Noveon Magnetics

Noveon Magnetics (formerly Urban Mining Company) recycles magnets called neodymium iron boron magnets (referred to as NdFeB magnets) from electronic waste (hard disk drives, audio equipment and industrial equipment) via its proprietary Magnet-to-Magnetä recycling process. The company’s recycled magnet, EcoFlux, is used in motor and other applications, where magnetic performance at high operating temperatures is important. The company claims to use 20% less heavy rare earths, such as dysprosium (Dy), during recycling compared to traditional manufacturers, while achieving 90% energy savings and reducing environmental impact by 50%.

The company operates a 145,000-square-foot plant in San Marcos, Texas with a capacity to produce approximately 2,000 tons of magnets annually by 2024. The company aims to increase annual production to 10,000 tons over the next five years.

Key customers and partnerships

The company partnered with the US Department of Defense (DoD) in September 2020 by signing a USD 28 million agreement for domestic sourcing of NdFeB magnets that would be essential for the DoD programs (such as propulsion and power systems). In May 2023, the company agreed to purchase 100 tons of neodymium iron boron (NdFeB) from Australian Strategic Materials, with the first shipment expected by June 2023.

Funding and financials

In May 2023, the company raised USD 75 million in a Series B funding round led by NGP and Aventurine Partners. The company intended to use the funds to expand its manufacturing facilities and strengthen its position as a leading provider of essential rare earth magnets.