Noveon, LG Electronics, Kangwon Energy Move to Close the Loop on Rare Earth Magnets

Noveon Magnetics has signed a strategic agreement with South Korea’s Kangwon Energy and LG Electronics to launch a closed-loop recycling program for rare earth permanent magnets, a move aimed at reducing supply risk and cutting reliance on newly mined materials, the companies said in a joint announcement cited by industry reporting.

The initiative matters as manufacturers face a tightening supply of rare earth magnets, which are critical components in consumer electronics, appliances and clean energy systems, while global production remains heavily concentrated in China. Analysts say closed-loop recycling has emerged as one of the few near-term options for diversifying supply without sacrificing performance or scale.

Rare earth magnets have long been difficult to recycle at high value, with most end-of-life material either downcycled or discarded. Previous efforts have struggled to deliver consistent magnetic properties or to integrate recycled material back into mass-market products. Market data published by the International Energy Agency show demand for rare earth magnets is expected to more than double by 2040, driven by electrification and energy transition technologies, intensifying pressure on supply chains.

Under the initial phase of the program, end-of-life magnets recovered from LG Electronics products will be processed using Noveon’s proprietary Magnet-to-Magnet technology, which converts used magnets directly into new, high-performance magnets. These recycled magnets will then be reintroduced into LG manufacturing lines for testing and validation, creating a full material loop from product recovery to redeployment.

The partners plan to scale production through a new facility in South Korea now under development as part of a joint venture between Noveon and Kangwon Energy. Observers note that localizing magnet recycling and production could help South Korean manufacturers hedge against price volatility and geopolitical disruption in global rare earth markets.

Industry groups have argued that collaboration between technology developers and original equipment manufacturers is essential to proving that recycled magnets can meet commercial performance standards. LG said the validation process will span multiple applications, including home appliances and consumer electronics, to generate real-world performance data that could support broader adoption.

Analysts say the project reflects a growing shift among electronics makers toward lifecycle-based design, as regulators and investors push for measurable progress on circular economy targets. While large-scale impact will depend on the speed of capacity buildout and product integration, the partnership signals rising confidence that recycled rare earth magnets can compete with virgin materials.

The companies indicated the program could be expanded to serve other industries that rely on permanent magnets, including automotive and energy systems, as demand for secure and traceable supply continues to grow.

Source: Noveon

SUNSHINE Spotlight: The partnership marks a practical step toward proving that recycled rare earth magnets can be reintegrated into mainstream electronics without compromising performance or supply security.