Magnequench
American magnet materials company
From Wikipedia, the free encyclopedia
Magnequench was an American manufacturer of neodymium magnets and magnetic materials based in Anderson, Indiana.[1][2]
| Type | Private |
|---|---|
| Industry | Advanced materials |
| Founded | 1986 |
| Defunct | August 31, 2005 |
| Fate | Sold by General Motors in 1995 to a consortium led by Sextant Group with Beijing San Huan New Material High-Tech and China National Non-Ferrous Metals |
| Successor | Neo Material Technologies |
| Headquarters | Anderson, Indiana, U.S. |
| Products | Neodymium–iron–boron magnets Magnetic powders |
| Parent | General Motors (1986–1995) |
It is often discussed in U.S. political debates over globalization and rare-earth supply chains after GM sold it in 1995 to a consortium involving Chinese investors and its Indiana operations were subsequently shifted overseas.[3][4][5] In 2005, Magnequench merged with AMR Technologies to form Neo Material Technologies.[6]
History
The origins of Magnequench lay in the early 1980s, when General Motors and Sumitomo Special Metals separately developed powerful neodymium-based permanent magnets.[7] Under the Magnequench name, GM opened a factory in Anderson, Indiana, in 1986.[8]
In 1995, GM sold Magnequench for US$70 million to Sextant Group, Beijing San Huan New Material High-Tech, and China National Non-Ferrous Metals.[9][8] It was part of GM's effort to divest non-core operations.[10][11]
After the sale, Magnequench expanded through acquisitions and overseas investment. It acquired other magnet producers, including GA Powders and UGIMAG's Valparaiso plant, while also building factories abroad[8] The company remained profitable for a time, but the market weakened in 2000 and Magnequench announced the closure of its Anderson plant.[8] Its Valparaiso, Indiana, facility was later shut as the company exited magnet manufacturing in Indiana.[5][12]
In 2005, Magnequench combined with Toronto-based AMR Technologies and the merged company became Neo Material Technologies.[6]
In 2012, Molycorp acquired Neo Material Technologies in a US$1.3 billion cash-and-share deal.[13][14]
Legacy
Magnequench became a recurring reference point in American debates over outsourcing, industrial policy, and dependence on Chinese rare-earth supply chains.[5][10] As of 2025, the United States still had no large domestic makers of neodymium magnets at the time MP Materials began trial production in Texas.[15]