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General Motors To Build Magnet Factory In The U.S. With VAC Of Germany

General Motors has announced that it is partnering with German magnetic alloy manufacturer Vacuumschmelze (VAC) to build a new magnet factory in the U.S. The magnets produced at the upcoming factory will support a range of new GM electric vehicles.

So far, General motors and VAC have signed a non-binding Memorandum of Understanding (MoU), and are expected to finalize a definitive agreements sometime early next year. The new plant will ramp up production efforts in 2024, and is expected to create hundreds of new jobs. The location of the U.S. facility will be revealed at a later date.

The new partnership with VAC will help GM to build a scalable and sustainable supply chain for its all-electric vehicles equipped with the latest GM Ultium drive motors, which will include more than a dozen nameplates, such as the Cadillac Lyriq luxury crossover, the GMC Hummer EV off-roader, and the Chevy Silverado EV pickup truck.

“We are building a resilient and sustainable EV manufacturing value chain in North America from raw materials to components to drive GM’s growth and support a mass market for EVs,” said GM vice president, Global Purchasing and Supply Chain, Shilpan Amin. “Our work with VAC is another bold step forward that will help ensure that we meet our goal to lead the EV industry in North America in more than just sales.”

The announcement of the new U.S.-based magnet factory is the latest in GM’s efforts to ramp up production of its new all-electric vehicles. Recently, General Motors also announced a new joint venture with advanced materials company POSCO Chemical to build a new North American factory that will process materials for GM’s EV batteries. GM has also announced a longterm agreement with MP Materials to source and manufacture rare earth materials and alloys for EV motors, as well as a new $51 million investment into the the GM aluminum die casting foundry in Bedford, Indiana to produce drive unit castings for models like the Chevy Silverado EV.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Love it. Keep more factories coming here. And all it took was Congress to even consider providing tax incentives for cars with locally made batteries. Imagine all of the other industry that could be made to return home this way.

    Reply
  2. More government hand outs of tax payer money. How about some free money for avocado growers?

    Reply
  3. GM had a magnet-producing plant in Anderson, Indiana, twenty years ago. It was called Magnequench.

    Reply
    1. I believe GM used to make their own semiconductors in Indiana as well. I’ve heard they are partnering with an American chip foundry to start manufacturing in the US again in the next few years. GM’s American investments have been really strong lately.

      Reply

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