This is the second in a series of articles looking at industrial and academic innovation in greater San Marcos and Central Texas. Another of the forthcoming articles will focus on the Texas State University Science, Technology and Advanced Research Park that is facilitating cutting edge business concepts and academic research and some of the businesses there.
This past February, Noveon Magnetics Inc., a San Marcos-based company, was in the headlines when Texas Gov. Greg Abbott chose to deliver his state of the State address from the manufacturing floor inside its state of the art facility.
What was the great attraction then that made this location paramount for that event? Here was a company not ubiquitously known even by many in this community, but one that insiders knew was taking the concept of a circular economy to heart from day one, when it spread its fledgling wings in Central Texas in 2012. Its business model is based around the concept of providing novel magnet products and processes that take at the core a systemic recycling technology, designed to generate more energy with less consumer product waste. Their advent into this marketplace gave the U.S a better foothold in the burgeoning arena for rare earth element resource capture and reclamation.
On Wednesday, July13, some questions were answered as Greater San Marcos Partnership Interim President Will Conley introduced Peter Afiuny, co-founder and chief commercial officer for Noveon and keynote speaker at the 2023 Innovation Summit held at the city of San Marcos Conference Center.
Afiuny described for the audience of about 200 of Central Texas’ most influential government officials and business leaders why his sole U.S.-based manufacturer of high-performance neodymium sus- tainable rare earth magnets is drawing international attention. Like a magnet for success, the company is a leading provider of critical rare earth magnets used in the automotive, defense, energy production and medical industries.
The idea that Noveon supports is what is termed a circular economy–one in which resources and materials are more 'liquid' in that they do not stop being useful when a consumer decides to dispose of them. Think cellular phones, microcomputers and other devices that rely on rare earth technology to make them function and one may see how a process to save those elements would have commercial value. Currently, less than 1% of end of life magnets are recovered and recycled, he said.
Afiuny said that Noveon empowers the reuse of valuable materials as opposed to letting these resources lie in limbo in landfills. The company’s first research lab and pilot production took place in Austin in 2012, but six years later, construction begin on its San Marcos facility. By 2020, the U.S. Department of Defense had taken notice. The company rebranded as Noveon Magnetics in 2022 and formally launched a product called EcoFlux.
“Magnets are used to create energy and motion in the electric motors and generators that power our society … and Noveon’s rare earth magnets–the EcoFlux–are the strongest, most sustainably produced permanent magnets commercially available,” states information on the company’s website.
Afiuny said that the Central Texas Region and especially the city of San Marcos is “strategically placed,” adjacent to the I-35 Corridor–a significant transportation artery within the U.S. Also of importance, this area boasts fine universities where Noveon with a staff of approximately 70 employees may find the next generation of talent ready to help expand its corporate vision.
It is all about the ever increasing appreciation of supply chain economics and the need for a “great place to do business,' Afiuny said, that makes this community a perfect hub for a company that deals in end of life materials.
Afiuny emphasized that this kind of production requires strong support teams and even stronger relationships with local agencies and governments, and that a large part of their ability to grow is based on establishing a better understanding with the public about what magnets can do in the 21st century.
“When I tell people that we manufacture magnets, the usual response is ‘You mean those things that we put on a refrigerator,’”Afiuny said, adding that this was an indication to him and his staff that theirs was a uphill battle when educating the public about what they do.
“And I hope that sharing our story can provide some insights into the challenges that we face as an organization,” he said, noting that the company is working in a highly competitive environment.
Just how crucial are magnets and magnetic materials in the ability to create and sustain a future that is ever more dependent on electronics?
Afiuny said, “Magnets are at the heart of electrification,” converting energy that powers electric vehicle motors and wind turbines, for example. Americans need magnets to propel the renewable energy infrastructure. Demand for magnets is on the rise–outpacing the available supply, which before Noveon entered the picture was largely on the shoulders of the Asia-Pacific region, where about 90% of magnet manufacturing is happening in China. Afiuny said it is estimated the demand for magnets will triple over the next decade because for so many vehicles and other products, “magnets are a critical junction for energy conversion.”
“We need to be aware that these supply chains that support this new age of electrification and efficiency has to be able to grow in a way where it can be a positive impact for our community,” Afiuny said.
“We had the privilege, the luck, the opportunity. Whatever you want to call it. I don’t think that we ever once doubted ourselves in our ability to kind of accomplish such a feat,” Afiuny said, even in the face of what early on appeared to be obstacles that might be insurmountable.
He said his team has contributed sacrifice, hustle and sleepless nights to gaining a unique and therefore powerful anchor position in an industry with little U.S. competition but an enormous international challenge in the years to come.
