Nidec and Noveon Magnetics Forge Major Agreement to Strengthen U.S. Rare Earth Magnet Supply Chain

Nidec and Noveon Magnetics Seal a Strategic Supply Agreement for Rare Earth Magnets

In a significant advancement for the U.S. manufacturing landscape, Nidec Motor Corporation, a pivotal player in electric motor production, has entered into a five-year off-take agreement with Noveon Magnetics. This partnership heralds a new era for securing a domestic supply chain of sintered NdFeB rare earth magnets, which are vital components in various high-tech applications, ranging from industrial automation to defense technologies.

The agreement promises to deliver over 1,000 tons of these essential finished magnets, with deliveries set to commence in 2025. Michael Briggs, the President of Nidec Motion Energy, expressed enthusiasm about the collaboration, highlighting the importance of meeting customer needs while fostering a resilient supply chain for vital components. He noted, "Noveon's EcoFlux™ magnets deliver a sustainable, superior finished product for our business units, enhancing the high standard of performance and quality we deliver to our customers."

Noveon Magnetics stands out as the only operational manufacturer of sintered NdFeB rare earth magnets within the United States. Their innovative EcoFlux™ magnets are designed to promote resource efficiency while utilizing recycled materials, enhancing the sustainability of magnet production. This unique capability not only meets growing domestic demands but also stabilizes the supply chain by providing a reliable American-made source of these high-performance magnets.

Mark Weisheit, Vice President of Procurement at Nidec, remarked, "Securing a reliable and sustainable American-made source of rare earth magnets allows Nidec to enhance its operational resilience and competitive advantage." The need for such domestic production is underscored by geopolitical uncertainties and the increasing reliance on foreign supply chains for critical components.

The CEOs of both companies expressed confidence that this agreement represents a critical step in fortifying America’s industrial capabilities. Scott Dunn, CEO of Noveon Magnetics, stated, "This agreement is vital for strengthening America's industrial base and ensuring the availability of advanced rare earth magnet technology for our strategic industries." The partnership aims to catalyze domestic solutions that address the burgeoning demand for high-performance materials across sectors like energy, robotics, and automotive manufacturing.

In summary, the alliance between Nidec Motor Corporation and Noveon Magnetics not only reinforces their respective operations but also contributes to the broader trend of revitalizing American manufacturing. As industries increasingly recognize the significance of supply chain resilience, such partnerships are essential for ensuring the long-term sustainability of domestic production capabilities.

About Noveon Magnetics

Noveon Magnetics is the sole high-performance rare earth magnet manufacturer based in the U.S. Their EcoFlux™ technology exemplifies a commitment to eco-friendly practices in magnet production, ensuring both performance and sustainability.

About Nidec Corporation and Nidec Motor Corporation

Nidec Corporation is recognized as the world's largest electric motor manufacturer, generating an impressive revenue in excess of $16 billion in 2023. The St. Louis-based Nidec Motor Corporation is integral to Nidec's operations across various industries, partnering in high-growth spaces such as industrial automation and vehicle electrification. For further insights, visit Nidec’s website.