Nidec Secures U.S.-Sourced NdFeB Magnets in Pivotal Deal with Noveon

Noveon Magnetics

Five-Year Agreement Boosts Domestic Rare Earth Supply Chain and Reduces Dependency on China

The United States takes a major step toward rare earth independence as Noveon Magnetics signs a five-year supply agreement with Nidec Motor Corporation. Under this deal, Noveon will deliver 1,000 metric tonnes of finished sintered neodymium-iron-boron (NdFeB) magnets, beginning in 2025.

This agreement highlights a growing trend of reshoring critical material supply chains. As U.S. demand for NdFeB magnets continues to rise, partnerships like this will be crucial for national resilience. Notably, Noveon sources part of its alloy from Australian Strategic Materials, strengthening ties with allied critical minerals suppliers.

Noveon’s Closed-Loop Supply Chain Leads the Way

Noveon’s magnet recycling facility in San Marcos, Texas, plays a vital role in reducing environmental impact and dependency on foreign materials. The company operates a 2,000 t/year plant that recycles end-of-life magnets. By doing so, Noveon supports a domestic circular economy for rare earth elements.

Moreover, Noveon has established an integrated, non-Chinese supply chain—an increasingly rare feat in the NdFeB magnet industry. With U.S. NdFeB magnet consumption projected to reach 37,000 tonnes by 2030 and over 68,000 tonnes by 2050 (according to a 2022 U.S. Department of Energy study), sustainable and secure sources are more critical than ever.

A Strategic Shift in Global Rare Earth Supply Chains

The Nidec-Noveon deal exemplifies a strategic shift in global rare earth supply dynamics. Nidec, a key player in electric motor manufacturing, gains a reliable domestic source for high-performance magnets vital for EVs, robotics, and industrial automation. This move not only enhances supply stability but also aligns with U.S. efforts to strengthen critical infrastructure and manufacturing competitiveness.

In summary, this agreement marks a significant milestone in U.S. rare earth independence. As demand skyrockets, the importance of domestic production and recycling grows—making Noveon’s model a blueprint for the future.