# Magnequench

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**Magnequench** was an American manufacturer of [neodymium magnets](/source/Neodymium_magnet) and magnetic materials based in [Anderson, Indiana](/source/Anderson,_Indiana).[1][2]

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](/source/Neo_Performance_Materials).[6]

## History

The origins of Magnequench lay in the early 1980s, when [General Motors](/source/General_Motors) and [Sumitomo Special Metals](/source/Sumitomo_Metal_Industries) 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](/source/Neo_Performance_Materials).[6]

In 2012, [Molycorp](/source/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]

## References

1. Clair, Jeffrey St (April 7, 2006). ["The Saga of Magnequench"](https://www.counterpunch.org/2006/04/07/the-saga-of-magnequench/)

1. Meyer, Steve (March 29, 2015). ["Magnets and Magnequench"](http://www.mechatronictips.com/2015/03/3427/commentary/magnets-and-magnequench/)

1. ["In Indiana, Clinton plays the China card"](https://www.nbcnews.com/id/wbna24315615). *NBC News*. April 29, 2008.

1. Smith, Ben (May 4, 2008). ["Clinton on Magnequench"](https://www.politico.com/blogs/ben-smith/2008/05/clinton-on-magnequench-008385). *POLITICO*

1. Freeman, Charles W. III (2009). ["Remember the Magnequench: An Object Lesson in Globalization"](https://csis-website-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/twq09januaryfreeman.pdf). *The Washington Quarterly*. **32** (1): 61–76. Retrieved 6 April 2026.

1. ["AMR Combines with Magnequench"](https://www.lexpert.ca/big-deals/amr-combines-with-magnequench/345934). *Lexpert*. Retrieved 6 April 2026.

1. Spross, Jeff (April 6, 2018). ["How China can win a trade war in 1 move"](https://theweek.com/articles/765276/how-china-win-trade-war-1-move). *The Week*

1. Moberg, David (23 January 2004). ["Magnet Consolidation Threatens Both U.S. Jobs and Security"](https://inthesetimes.com/article/magnet-consolidation-threatens-both-us-jobs-and-security). *In These Times*. Retrieved 6 April 2026.

1. ["GM to sell Magnaquench"](https://www.wardsauto.com/news/archive-wards-gm-to-sell-magnaquench/761785/). *WardsAuto*. 25 September 1995. Retrieved 6 April 2026.

1. Szczesny, Joseph (15 November 2023). ["GM Back in Magnet Business, This Time for BEVs"](https://www.wardsauto.com/news/archive-wards-gm-back-in-magnet-business-this-time-for-bevs/797629/). *WardsAuto*. Retrieved 6 April 2026.

1. ["GM SHUTS ONE PLANT EARLY, SELLS ANOTHER"](https://www.autonews.com/article/19950703/ANA/507030725/gm-shuts-one-plant-early-sells-another/). *www.autonews.com*

1. Erler, Susan (August 21, 2007). ["Former Magnequench factory for sale"](https://nwitimes.com/business/local/article_f7e7250c-e745-5a3e-a8a1-51c509a25806.html)

1. ["Molycorp completes takeover of Neo-Material"](https://me.smenet.org/molycorp-completes-takeover-of-neo-material/). *Mining Engineering*. 12 June 2012. Retrieved 6 April 2026.

1. Areddy, James T. (March 11, 2012). ["Deal Shows China's Rare-Earth Sway"](https://www.wsj.com/articles/SB10001424052702303717304577274882847317306). – via www.wsj.com.

1. Zorpette, Glenn (12 February 2025). ["MP Materials Starts Producing Neodymium Magnets in the US"](https://spectrum.ieee.org/advanced-magnet-manufacturing-in-us). *IEEE Spectrum*. Retrieved 6 April 2026.

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Adapted from the Wikipedia article [Magnequench](https://en.wikipedia.org/wiki/Magnequench) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Magnequench?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.