Evolution Metals Signs Supply Deal For Non-China NdPr Metal Used In EV Motor Magnets
The agreement with Senri Trading sources material from Vietnam as US defense contractors face a Chinese-origin magnet ban in 2027.
Evolution Metals & Technologies has signed an agreement to source neodymium-praseodymium metal entirely from outside China, securing a key input for the permanent magnets used in electric vehicle motors.
What Happened
EM&T executed a supply deal with Senri Trading to purchase NdPr metal produced by SRE Vietnam, a wholly owned subsidiary of Japanese trading company Tokai Trading. The material will feed an increase in output to approximately 10,000 metric tons of rare earth magnets per year by 2026. SRE began tripling its mid-stream processing capacity to 3,929 metric tons annually in January 2025. Buying finished NdPr metal rather than oxide allows EM&T to feed its existing production lines directly without additional reduction steps.
Why It Matters
NdPr magnets are critical components in EV traction motors, and the supply chain for these materials has been heavily concentrated in China. The contract moves EM&T closer to operating its magnet production at full rate while tapping a non-China source. Starting January 1, 2027, US defense contractors will be barred from using Chinese-origin rare earth magnets in qualifying weapons systems—a deadline that is reshaping sourcing strategies across the industrial supply chain.
The Bottom Line
EM&T operates in Korea and plans to build additional capacity in the United States. The company manufactures rare earth magnets and battery materials but does not intend to enter the mining business, focusing instead on mid- and downstream production.
