By Alexander Miller, consultant in energy markets. Eurasia Business News, January 19, 2025. Article n°1994
Texas-based rare-earth magnet maker Noveon Magnetics has raised $215 million in new funding to expand U.S. production of permanent magnets critical for EVs, wind turbines and defense systems. The deal underscores how private capital is piling into domestic rare-earth supply chains to reduce dependence on Chinese magnet imports.
Noveon closed a $215 million Series C round, led by a $200 million investment from One Investment Management (OneIM), with participation from other existing and new investors.
The company manufactures sintered rare-earth permanent magnets at its facility in San Marcos, Texas, positioning itself as one of the few U.S. producers in a market dominated by Asian suppliers.
How Noveon plans to use the money
The funding will be used to expand production capacity, upgrade manufacturing technology, and secure additional raw material supply to support large automotive, energy and industrial customers.
Noveon aims to scale to multi‑thousand‑ton annual magnet output over the next several years, aligning with rising demand from EV makers, renewable energy developers and defense contractors seeking non‑Chinese sources.
Strategic significance for the U.S.
Rare-earth magnets such as neodymium-iron-boron are essential for high‑performance electric motors, wind turbines, and precision defense systems, and the U.S. currently relies heavily on imports, especially from China.
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Investments like Noveon’s raise, along with new mining and processing projects in Texas and Oklahoma, are part of a broader “mine‑to‑magnet” push to build a secure, domestic critical-minerals supply chain, amid rising tensions with China.
China continues to control about 90% of the world’s rare-earth magnet production and has been tightening oversight on certain strategic rare earths, especially those used in military and high-tech sectors. The recent export surge—while stabilizing supply for global buyers—also underscores China’s strategic management of its rare-earth sector amid increasing geopolitical pressures and efforts by the West to diversify supply chains.
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© Copyright 2025 – Eurasia Business News. Article no. 1994
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