According to Reuters, GKN Powder Metallurgy, now a Dauch company, has halted plans to produce rare earth permanent magnets in Europe. Sources told Reuters that the decision was made prior to the finalisation of Dauch’s acquisition, noting that the rare earths segment was considered a non-core activity without a guaranteed financial outlook.

In December 2025, GKN PM informed its partner Ionic Technologies – a start-up focused on developing a new method for permanent magnet recycling – that it would cease work in the sector. One source told Reuters that Ionic had received one batch of magnets from GKN’s German pilot magnet plant before the plant’s closure.

There is no further detail available as yet regarding the Memorandum of Understanding (MoU) signed between GKN PM and Schaeffler AG, through which GKN PM would produce permanent magnets for the automotive supplier.

A separate source told Reuters that GKN was still in the decision-making stage regarding the future of its European pilot plant following the cessation of its permanent magnet production.