General Motors has entered into a multi-year deal under which Noveon Magnetics will supply rare earth magnets for use in components of the automaker’s full-size SUVs and trucks, the magnet maker said on Wednesday.
China controls more than 90% of global rare earth processing capacity and imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter jets to household appliances.
Automakers, especially those focused on electric vehicles, are among the largest industrial consumers of rare earth materials.
Ford executives too have said that a pinched supply of rare earth magnets from China disrupted production.
Noveon said the magnet deliveries to GM began in July. It said it was the only operational manufacturer of sintered neodymium-iron-boron (NdFeB) magnets in the United States.
Sintered NdFeB magnets are currently the strongest and most advanced permanent magnets commercially available.
(By Nathan Gomes; Editing by Shailesh Kuber)
