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A leading manufacturer of permanent magnets will establish a new factory to supply U.S.-made magnets for General Motors’ electric vehicles, company officials announced.
GM and VAC finalized a non-binding memorandum of understanding and plan to complete a formal agreement early this year. Under the partnership, VAC will convert locally sourced raw materials into permanent magnets, which will be delivered to GM motor manufacturing facilities and incorporated into electric motors for vehicles on GM’s forthcoming Ultium EV platform, including the Hummer EV, Cadillac LYRIQ, and Chevrolet Silverado EV.
VAC, headquartered near Frankfurt, Germany, says its permanent magnet division is the only industrial-scale producer of rare earth magnets in the Western Hemisphere.
“VAC’s deep magnetic materials knowledge and extensive e-mobility technology expertise, in partnership with GM, will enable a cleaner global future for our communities,” VAC CEO Dr. Erik Eschen said in a statement.
The companies expect operations at the forthcoming plant to begin in 2024. The project is expected to create hundreds of jobs at a location to be announced at a later date. Total employment and capital investment estimates were not disclosed.
GM also announced an agreement with MP Materials, the Las Vegas-based owner of the Mountain Pass rare earth mine in southeastern California. MP will supply U.S.-sourced rare earth materials, alloys, and finished magnets to GM, as well as establish a new manufacturing operation in Fort Worth, Texas.
“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 Shilpan Amin, GM’s vice president of global purchasing and supply chain. “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.”
Image Credit: GM
