General Motors is shifting away from China and other foreign sources of rare earth metals for its growing EV fleet. Instead, GM is looking domestically to source these metals and materials.
Late yesterday, GM announced more than a dozen deals around purchasing rare earth metals from the US’s only remaining rare earth metal mine. While they also made a deal to create two new plants to produce the high-power magnets needed for EV engines.
For most automakers, high-powered magnets and rare earth metals are sourced from China. However, GM is making the bold step to try and secure a domestic supply to keep their entire supply chain within North America.
The first strategy collaboration will be between GM and MP Materials. MP Materials operates the only rare earth mine in the US in Mountain Pass, California. MP will provide raw and processed materials and set up a factory in Fort Worth, Texas, to produce high-powered magnets.
Secondly, GM is working with German-based Vacuumschmelze to supply rare earth metals and provide finished magnets. The company will set up a US magnet factory for GM. GM will release the factory location later in the new year.
GM already has deals to source raw materials and finished components from suppliers both in the United States and Canada. However, these new deals relieve supply chain constraints and the reliance of GM on China.