Highlights

• Noveon Magnetics and Kangwon Energy signed an MOU to build a 2,000-ton-per-year NdFeB magnet plant in South Korea.
• This project will double Noveon's capacity and establish the first U.S.-Korea magnet manufacturing corridor outside China.
• The facility targets a 2027 production start.
• The collaboration combines Noveon's EcoFlux technology with Kangwon's EPC expertise.
• The plant will serve automotive, industrial, electronics, and defense sectors with a non-Chinese magnet supply.
• Success depends on meeting tight construction timelines.
• Securing allied rare-earth oxide supply is crucial.
• Managing cross-border compliance is required.
• Maintaining capital discipline while scaling internationally is essential.

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How about the building a Trans-Pacific magnet corridor? In a decisive move to diversify the global rare-earth magnet supply chain, Noveon Magnetics (opens in a new tab)—the only operational manufacturer of sintered NdFeB magnets in the United States—has signed a Memorandum of Understanding (MOU) with Kangwon Energy Co., Ltd (opens in a new tab). to build a 2,000-ton-per-year NdFeB magnet plant in South Korea. The joint venture will double Noveon’s worldwide production capacity and create the first U.S.–Korea magnet manufacturing corridor outside China.

The planned facility, targeted to start production in 2027, will serve Korea’s automotive, industrial, electronics, and defense sectors, providing a secure non-Chinese source of high-performance magnets essential for EV motors, turbines, and defense systems.

Note Noveon Magnetics ranks #1 in Division 3 of the Rare Earth Exchanges (REEx) Rare Earth Magnet Manufacturing Rankings.

Technology Meets Engineering Execution

The collaboration pairs Noveon’s proprietary EcoFlux™ magnet-manufacturing (opens in a new tab) and recycling technology with Kangwon’s end-to-end Engineering, Procurement, and Construction (EPC) expertise in powder handling, thermal treatment, environmental systems, and factory automation. CEO Scott Dunn called the deal “a major milestone in building a secure, diversified, and resilient rare-earth magnet supply chain outside of China.”

Kangwon Energy CEO Jinyong Shin highlighted the alignment: “By combining our engineering and process capabilities with Noveon’s technology, we can de-risk and accelerate Korea’s transition to reliable, diversified magnet supply.”

Strategic Context and U.S.-Korea Linkage

The MOU underscores deep industrial collaboration between the United States and South Korea, reinforcing both nations’ drive to localize strategic materials production. For Korea, it represents a pathway to reduce dependence on Chinese magnet imports; for Noveon, it extends its manufacturing footprint into Asia’s high-demand markets while preserving Western technology control.

Execution Challenges Ahead

The opportunity is immense—but so are the hurdles. The facility must reach commercial throughput by 2027, a tight schedule for EPC, permitting, and qualification. Key questions remain:

• Can Noveon sustain capital discipline while scaling abroad?
• Will the supply of separated rare-earth oxides from U.S. or allied sources keep pace?
• How will environmental compliance and recycling logistics be managed across borders?

Success hinges on delivery, not design.

Market & Investor Perspective

Privately held Noveon—as cited above, the company ranks #1 in Division 3 of the REEx Magnet Manufacturing Rankings—and continues to lead in closed-loop U.S. magnet manufacturing. Another domestic player with potential is Permag (owner of EEC (opens in a new tab)). Its expansion could position the firm for eventual public-market entry or strategic partnerships. Investors in peer producers should watch for construction milestones and verified customer offtakes as the ultimate proof of execution.

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