Noveon Magnetics, a prominent U.S. manufacturer of sintered rare earth magnets, has successfully closed a $215 million Series C financing round. The investment was led by a significant $200 million contribution from One Investment Management (OneIM). This capital injection is earmarked to expand domestic magnet production, addressing accelerating demand from critical sectors and bolstering the nation's supply chain security.
A Strategic Investment for Domestic Expansion
The financing will fuel a substantial growth phase for Noveon, enabling a major expansion of its U.S.-based manufacturing capacity for rare earth magnets. This move comes as industries like automotive, defense, and AI face increasing needs for these critical components. The transaction also facilitated secondary sales for some of the company's existing shareholders, providing liquidity.
Scott Dunn, CEO of Noveon, described the financing as a pivotal step in scaling the company's production to meet rapidly growing customer demand. He emphasized that with OneIM's support, Noveon can accelerate deliveries of high-performance magnets made entirely in the United States. This will enhance both production capacity and supply chain resiliency for its diverse customer base.
Reshoring a Critical Industry
Rare earth permanent magnets are indispensable components in modern technology, powering everything from automotive systems and defense platforms to robotics and data storage. For decades, the U.S. has been heavily reliant on foreign supply chains for these materials, creating significant vulnerabilities. Noveon's American manufacturing platform directly confronts this long-standing issue by providing a reliable domestic source.
As the first company to successfully reshore full-scale production of sintered rare earth magnets to the U.S., Noveon is uniquely positioned for growth. This investment will help the company expand its capacity beyond 2,000 tons per year. This scale-up is crucial for supporting existing commercial partners and capturing new demand from industries requiring high-quality magnetic materials.
A Vote of Confidence from a Global Investor
The lead investor, OneIM, is a global alternative investment manager, and its substantial commitment underscores the strategic importance of Noveon's mission. As part of the transaction, OneIM will appoint two new members to Noveon's board of directors. This move signals a deep, collaborative partnership aimed at guiding the company through its next phase of expansion.
Rajeev Misra, CEO and Co-Founder of OneIM, stated that Noveon is uniquely positioned to lead the reshoring of this vital industry when domestic manufacturing is a national priority. He praised the company's exceptional talent, operational expertise, and disciplined execution. Misra expressed pride in supporting Noveon's growth as it builds capacity to meet a critical national need.
Building on a Year of Significant Milestones
This latest funding round builds upon a year of remarkable achievements for Noveon, which have solidified its market leadership. The company entered into multi-year supply agreements with industrial giants General Motors and ABB, securing long-term demand for its products. These agreements demonstrate the confidence major corporations have in Noveon's ability to deliver at scale.
Furthermore, Noveon has forged strategic partnerships with Lynas and Solvay to create a more resilient raw material supply chain. The company also launched a closed-loop magnet recycling initiative with LG Electronics and Kangwon Energy, highlighting its commitment to sustainability. These milestones have laid the groundwork for a fully domestic, vertically integrated magnet solution.
This $215 million financing marks a watershed moment for Noveon Magnetics and a significant victory for the U.S. manufacturing sector. It provides the necessary capital to scale a critical domestic industry, reducing reliance on foreign supply chains for essential technologies. With this support, Noveon is poised to accelerate its mission of delivering secure, high-performance magnets, thereby strengthening national security and fostering technological innovation.