Germany’s Vacuumschmelze agrees binding deal with GM on magnet factory
The agreement finalizes a memorandum of understanding of the two companies announced in December 2021, it was said in a statement. No financial details were provided.
The factory to make rare permanent magnets needed for EV motors is expected to open in 2025 and supply a wide range of GM models, including the Chevrolet Silverado, Cadillac Lyriq and the Hummer, it added.
The rare earths are a group of 17 metals that, after processing, are used to make magnets found in EV motors that turn electricity into movement.
VAC, the largest producer of rare permanent magnets in the Western hemisphere, said the factory will use locally sourced raw materials and support GM for a minimum of 10 years.
GM said it could produce up to 2 million EVs globally by 2025, the year when it expects EVs to make money for the company.
(Reporting by Eric Onstad; Editing by David Goodman and Jane Merriman)