Magnet Ramp-Up

🤝 Hi, Procurement Pros!

Yesterday’s Stellantis furloughs showed how tariffs bite first and ask questions later—yet the real choke-point is magnet metal. Let’s zero in on who’s actually shipping domestic blocks, who’s merely breaking ground, and where the public money funnel just opened.

📈 Market Snapshot (Apr 24, 2025)

Sources:
Shanghai Metals Market | S&P Global Platts | Freightos Baltic Index | CME Group

🔎 In Focus — DOE Cash Opens the Magnet-Recycling Valve

What Happened
DOE opened its $425 million Round-2 window under the Advanced Energy Manufacturing & Recycling program and, for the first time, lists rare-earth magnet recycling as a “priority technology.” (DOE press release)

Details

• Grants up to $100 million per site; DOE covers ≤ 50 % of project costs. (Manufacturing Dive)

• Target communities: shuttered coal towns in 48 states. Applications due June 24 → awards Q4 2025.

• Early movers: HyProMag USA, Noveon, Urban Mining Co. filed letters of intent on the 23 Apr applicant call. (HyProMag update)

Why It Matters
Recycled feedstock can cut dysprosium demand 25–30 % while unlocking IRA Section 45X production credits—sweet relief as tariffs inflate virgin-material cost models.

Next Steps

1. Map in-house scrap (servo motors, HDDs, e-scrap) for feed guarantees.

2. Pre-qualify bidders now—grant winners will jam third-party assessment queues fast.

3. Flag ESG upside: recycled-content magnets slash scope-3 CO₂ ≈ 30 %.

Further Reading

• DOE Round-2 FOA overview (energy.gov)

• Full FOA (Grants.gov, DE-FOA-0003294)

• HyProMag rare-earth magnet recycling expansion update

📌 Topic of the Week — Mine-to-Magnet, Part 2 / 3: Execution Risks & Early Winners

• MP Materials secured a $58.5 million Section 48C clean-energy tax credit for its Fort Worth magnet plant.^{Press release}

• The line has reached trial-magnet output; prototype blanks ship to GM for fit-checks, PPAP slated Q4 2025.^{Dallas Innovates}

• MP expects ≈ $190 million more in customer pre-payments and tax credits by 2025.^{Business Wire}

Execution Risks

Early Winners

• GM — secures 100 % of Ultium magnet needs through 2028.

• Nidec — EcoFlux™ pact with Noveon covers steering & e-drive (≈ 20 % Dy cut).

• StudBuddy and other tooling SMEs: queue position > headline tonnage.

Our Take

Lock a pilot-volume LOI this quarter—it’s not about price yet, it’s about place-in-line.

Next Steps

1. Draft recycled-content clauses to monetize 45X / 45Z credits.

2. Push engineering for Dy-lean design rules ahead of Q3 sourcing gates.

3. Build scenario S-curves (5 kt / 10 kt / 15 kt domestic capacity) into your cost roadmaps.

Further Reading

• DOE Round-2 FOA overview – energy.gov

• Full FOA PDF – DE-FOA-0003294

• MP Materials investor deck (Q2 2024) – Business Wire

🧑‍💼 Personnel Moves

• Joe Elliott → Chief Revenue Officer, JAGGAER (Business Wire)

• Tony Miller → Chief Supply Officer, Toyota Material Handling NA (PR Newswire)

• Kevin Weadick → President & CEO, TricorBraun (PR Newswire)

• Anders Lange → Chief Procurement Officer, DXC Technology (PR Newswire)

• Doug LaCroix → Chief Procurement Officer, JR Automation (CPO Rising)

• Scott Schlotthauer → Assoc. VP & CPO, Oklahoma State University (OSU News)

• Patricia Ferrari → VP Supply Chain, Deutsche Aircraft (Company Release)

• Roland Schwögler → Chief Procurement Officer, Flint Group (Flint Group)

📆 Weekly Recap (Apr 22 – 24)

⚡ Quick Takes

• Citi trims Q3 copper call to $8 k/t on tariff drag—watch wiring-harness quotes. (Reuters)

• Port of LA TEUs +12 % YoY as importers front-load ahead of 3 May parts duty. (Port of LA April Cargo Release)

• HyProMag preps U.S. pilot for hydrogen-decrepitation recycling, targeting 1 kt/y magnet scrap by 2027. (HyProMag USA Feasibility)

💼 Job Board

🔢 Number of the Week

$58.5 million
— clean-energy tax credit MP Materials has already booked for its Fort Worth magnet line – roughly 15 % of plant CAPEX covered before full ramp-up.
(Reuters)