Noveon Magnetics Raises $215M to Expand U.S. Rare-Earth Magnet Production
Noveon Magnetics, a U.S.-based manufacturer of rare-earth magnets, has raised $215 million in a Series C funding round to expand domestic production capacity, as efforts intensify to reduce reliance on overseas supply chains.
The round was led by OneIM (One Investment Management)Dealroom has a profile for this one. Try Dealroom →, the investment firm founded by Rajeev MisraDealroom has a profile for this one. Try Dealroom →, the former head of SoftBank Group’s Vision Fund, which contributed $200 million. The remaining $15 million came from existing investors.
Founded in 2014 by Scott DunnDealroom has a profile for this one. Try Dealroom → and Peter AfiunyDealroom has a profile for this one. Try Dealroom → and based in San Marcos, Texas, Noveon is one of the few companies producing rare-earth permanent magnets in the United States. The company began commercial deliveries within the past two years and is positioning itself as a domestic supplier to industries including automotive, defence, electronics and energy.
China currently dominates global magnet production, a concentration that has drawn increased attention amid trade tensions and export controls. Noveon's latest funding round comes amid rising investment into U.S. critical-mineral and advanced materials companies, supported by industrial policy measures and public funding aimed at strengthening domestic supply chains.
Noveon has previously received close to $40 million in U.S. federal grants to support the development of local manufacturing capabilities. The company said it is on track to reach annual production of more than 2,000 tonnes of magnets, representing a growing share of U.S. demand.
Beyond its U.S. operations, Noveon has also announced plans to expand internationally, including a facility in South Korea and partnerships focused on recycling end-of-life electronic materials to produce new magnets.
Sources:
The Wall Street Journal
Morning Star
FinSMEs
J.V.
