VAC has announced a binding long-term supply agreement with General Motors for North America permanent magnet production. This has been labeled as a major step forward in creating a strong, sustainable and scalable supply chain for electric vehicles.
The agreement will see VAC build a facility in North America to manufacture permanent magnets for the electric motors used in a broad portfolio of EVs, including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV SUV and Pickup. The new facility will use locally sourced raw materials.
“Our agreement with VAC for permanent magnet production in North America represents another major milestone in building a strong, secure, sustainable and cost-competitive supply chain to support our EV growth.” said Jeff Morrison, GM Vice President, Global Purchasing and Supply Chain.
Companies across the U.S have been looking to source their EV material locally to reduce dependence on China and other countries. The Biden-Harris administration has been a huge factor into the investment made into EVs as $2.8 billion was awarded to the sector from the Bipartisan Infrastructure Law.
Since this investment was made, battery manufacturing companies such as LG Chem, Panasonic and SK Innovations all have plans to introduce battery manufacturing facilities in the US for the likes of Ford and Tesla.
The binding agreement finalises a Memorandum of Understanding (MoU) VAC and GM announced in December 2021.
“The demand for rare earth permanent magnets and supporting technologies is intensifying at an unprecedented rate as the world shifts to sustainable clean energy. VAC is extremely excited to be partnering with General Motors to take this important step to ensure the realisation of GM’s all-electric future”, said Dr. Alexander Barcza, VAC Vice President Permanent Magnets.
VAC has said that it is in the process of establishing a North American rare-earth permanent magnet production facility to support GM for a minimum period of 10 years. The finished magnets will be delivered to facilities building EV motors for GM within North America. The VAC facility is expected to start production in 2025 and create hundreds of new jobs.
“GM’s leadership in recognizing the need to develop a resilient North American supply chain creates additional resources to ensure all regions of the world will have sufficient access to core elements and technology to pivot to a cleaner global future. We are thrilled to be a part of it”, said Scott Pelhank, VAC Vice President Sales.
Picture and press release: VAC