GM Signs Agreement With Vacuumschmelze EV Magnet Factory In North America4
GM signed a binding agreement with German magnet maker Vacuumschmelze, calling for the latter to build a factory in North America. Vacuumschmelze’s facility will supply GM with rare earth permanent magnets for electric vehicle (EV) motors.
The deal follows up on a previous memorandum of understanding between GM and the German magnet manufacturer in early December 2022. A memorandum of understanding declares two or more companies’ intention to cooperate for a specified purpose, but is non-binding.
According to a report from Reuters, Vacuumschmelze says its North American factory will be operational by 2025. The facility will use raw materials the company sources “locally,” though it provided no exact details. It will supply GM with rare earth permanent magnets for at least 10 years following the start of production at its new plant.
The magnets produced by Vacuumschmelze will be used for electric vehicles across multiple GM brands. Those vehicles include the Chevy Silverado EV pickup truck, the Cadillac Lyriq luxury crossover, the GMC Sierra EV and the massive GMC Hummer EV.
The Vacuumschmelze deal is not the only agreement GM has made with other companies as part of its EV strategy. The General announced a definitive supply agreement with MP Materials, Inc. in April 2022.
MP Materials agreed to provide alloys, neodymium-iron-boron magnets for GM electric vehicles, and rare earth mineral raw materials extracted from a mine located in California. GM will start receiving magnets and materials from MP starting in late 2023, even sooner than those to be supplied by Vacuumschmelze.
GM inked at least four more deals in 2022 related to its electric vehicle plans. A multi-year supply agreement with Swiss mining company Glencore gives GM access to battery-grade cobalt, with additional cobalt and nickel secured through a contract with Queensland Pacific Metals, an Australian mining exploration company.
Livent of Philadelphia agreed in July 2022 to supply GM with battery-grade lithium hydroxide over a six-year period beginning in 2025. Livent’s lithium is currently supplied mostly from Argentina, but the company plans to switch over gradually to 100 percent U.S. produced lithium hydroxide. GM also launched a partnership with Posco Chemical to build a $500 million cathode material factory in Quebec that will start supplying GM in 2024.
This network of suppliers will help GM achieve its electric vehicle goals, including a plan to launch 30 new EV models by 2025. The materials will enable GM to produce its Ultium batteries to power the Ultium Drive motor technology underlying its electric vehicles.
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Converting over to EV is not as simple as many might think it is. Good article!
Yeah, not so green!