Noveon Magnetics announces $75M in Series B funding

Noveon Magnetics, a San Marcos, Texas-based manufacturer of neodymium rare earth magnets using recycled content, has announced closing a $75 million Series B funding round led by NGP and Aventurine Partners, based in Houston and LA.

The new funding will accelerate the expansion of Noveon’s manufacturing facilities and enhance its position as a leading provider of critical rare earth magnets to businesses that span the automotive, defense, energy production, medical and consumer goods sectors, among others, according to the company.

Additionally, James Wallis, a partner at Texas-based NGP, a leading private equity firm in the energy and natural resources industry, will join Noveon’s board of directors. 

Noveon takes what it calls a sustainable approach to magnet production through a process that reduces waste and removes hazardous byproducts while producing a superior magnet.

The company says less than 1 percent of rare earth magnets are recovered or recycled. But its magnet-to-magnet recycling technology hopes to tap into the estimated 600,000-ton supply of these end-of-life magnets.

Noveon’s patented EcoFlux magnet can be made from mined rare earth elements or directly from recycled end-of-life magnetic materials. By leveraging a cache of materials sourced from discarded items, such as electric vehicles and hard drives, Noveon says its process is more than 90 percent more energy efficient than traditional manufacturing and results in a stronger, more durable magnet.

Noveon’s magnets can be used in electric vehicles, MRI machines, wind turbines, defense systems and robots.

“Our team is working hard every day to produce the rare earth magnets needed to power a low-carbon future while strengthening our domestic supply chain in accordance with our national security priorities,” Noveon CEO Scott Dunn says. “This funding will allow our company to continue ramping up production to help fulfill our robust sales pipeline and meet the skyrocketing global demand for critical rare earth magnets.” 

“Noveon Magnetics has a proven capability of sustainably manufacturing superior rare earth magnets, which are an essential component in a wide variety of industries—especially those focused on the beneficial usage and generation of electricity,” Wallis says. “We’re proud to partner with Noveon to help them scale their operations and provide their customers a reliable, high-quality supply alternative.”

Noveon’s 145,000-square-foot San Marcos facility is commercially operational and on track to produce approximately 2,000 tons of magnets annually by 2024, the company says. Noveon was recently recognized as one of Fast Company’s Most Innovative Companies of 2023 for its unique, sustainable rare earth magnet manufacturing technologies.