General Motors Co. has signed a deal with Texas-based Noveon Magnetics Inc. to secure rare-earth magnets for its full-size pickup trucks and SUVs, marking the third domestic supply contract the automaker has signed related to the critical trade dominated by China. 

The latest agreement and two others — with Las Vegas-based MP Materials Corp. and E-Vac Magnetics, a South Carolina-based unit of Germany’s Vacuumschmelze GmbH — will allow GM to get the majority of rare-earth magnets it sources directly from domestic suppliers, the Detroit carmaker said August 6. But many of the parts it buys still rely on Chinese-made magnets. 

Beijing has imposed export controls over rare-earth magnet production in retaliation for U.S. tariff threats. Ford Motor Co. had to temporarily idle plants in June due to a shortage of magnet supplies.

While the Chinese government has eased those restrictions after reaching a deal with the Trump administration, Washington continues to push for more domestic production to reduce reliance on China, including having the Pentagon take an equity stake in MP Materials. 

GM started working with MP Materials in 2021 during the Biden Administration to develop a U.S. supply chain for the magnets, which are crucial for internal combustions engines, electric-vehicle motors and other key parts. MP and E-Vac are both expected to begin production from next year, according to the auto manufacturer. Noveon already is producing magnets and began deliveries as of last month.