While Rivals Panicked Over China, GM Quietly Became Magnet Royalty

3 Minute Read

For years, rare earth magnets—especially the powerful neodymium kind—have been the secret sauce powering electric vehicle motors, sensors, and other precision parts. Unfortunately, almost 90% of the world’s magnet processing happens in China, who also occasionally enjoys reminding the globe that they own the magnet spigot. Most automakers reacted with mild panic. GM, on the other hand, put down its coffee, rolled up its sleeves, and decided: “Fine. We’ll build our own magnet empire—American-made and drama-resistant.

That decision became reality in 2025. GM signed a multi-year agreement with Texas-based Noveon Magnetics, which already began supplying U.S.-made neodymium-iron-boron magnets for GM trucks and SUVs. It also teamed up with MP Materials, which mines and processes rare earths in California and is scaling magnet manufacturing in Texas. For extra style points, GM even invested in Niron Magnetics, a startup working on “Clean Earth Magnets” that aim to reduce rare earth dependence entirely. While other automakers were still refreshing spreadsheets, GM was securing raw materials, factories, and next-gen tech. Supply chain foresight or mild clairvoyance? You decide.

What makes this genius is timing. In 2025, China tightened rare earth export controls—again—causing global anxiety and headlines. But GM? They were already lining up U.S. magnets like a doomsday prepper with a bunker full of torque. With domestic suppliers ramping capacity and federal support pouring into “critical materials,” GM is now positioned to brag about Made-in-America magnets, score political goodwill, reduce risk, and potentially outmaneuver rivals when the next supply chain meltdown hits.

Sure, there are challenges: domestic magnet plants must scale, costs need to come down, and alternative tech might change the game. But right now, GM looks like the rare automaker that didn’t just build EVs—it built the magnet moat around them. If this gamble pays off, GM won’t just have motors—it’ll have the kind of supply chain swagger that makes Wall Street cheer, Washington smile, and competitors say, “Wait… were we supposed to do that too?”

Disclaimer: This content is for informational and entertainment purposes only and does not constitute financial or investment advice. The information provided may be outdated or contain inaccuracies. Always conduct your own due diligence and consult a licensed financial advisor before making investment decisions. Investing involves risk, including the potential loss of principal.

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