GM reaches supply deals for electric vehicle motor magnets
ABC News
General Motors has taken two more steps to make sure it has the raw materials for the transition from petroleum to battery power, this time involving magnets for electric vehicle motors
DETROIT -- General Motors has taken two more steps to make sure it has the raw materials for the transition from petroleum to battery power, this time lining up magnets for electric vehicle motors.
On Thursday the company said it has a deal with MP Materials to supply rare earth metals and finished magnets for the motors from a new factory in Fort Worth, Texas, starting in 2023.
It's also negotiating what is likely to be a joint venture with Vacuumschmelze (VAC) of Germany to build a U.S. factory to make electric vehicle motor magnets. Production is to start in 2024 and will create “hundreds of new jobs” the companies said.
The companies didn't announce financial terms of the deals. Shilpan Amin, GM's head of purchasing and supply chain, said it has a parts supply agreement with MP Materials with no GM capital investment. The capital structure of the venture with VAC is still being worked out, but the companies said they would build a plant together.
