Mentioned:
GM -1.34% MP -9.59%
General Motors is making a push to distance themselves from China for rare earth magnet supply. Which is exactly why they’ve just struck a new deal with a private company in Texas.
What’s happening:
- General Motors (NYSE: GM) has formed a new deal with Noveon Magnetics for the supply of rare earth magnets to be used in the manufacturing of new full size SUVs and trucks
Why it matters:
- This is one of the first major new deals for rare earth magnets that General Motors has struck as part of their effort to reduce their dependence on China being their primary source of supply for rare earth elements
Going deeper:
- Noveon Magnetics has publicly stated they will begin shipments of sintered niodyium-iron-boron rare earth magnets to General Motors immediately
- This is not the first time that General Motors has struck a rare earth magnet supply deal with an American based company, previously entering into contracts with MP Materials (NYSE: MP) and E-Vac Magnetics
The intrigue:
- Noveon Magnetics has also received significant support from the United States federal government, including previously being awarded $35M USD from the United States Department of Defense to accelerate the production of rare earth magnets at their facility located in San Marcos, Texas
