GM To Source Rare Earth Materials From MP Materials For Electric Vehicles

(RTTNews) - General Motors (GM) and MP Materials (MP) have signed a binding agreement to form a collaboration to develop a fully integrated U.S. supply chain for rare earth magnets, the auto giant said in a statement. The rare earth magnets are critical components in GM Ultium Platform EV motors.

As per the long-term agreement, MP Materials will supply U.S.-sourced and manufactured rare earth materials, alloy and finished magnets for the electric motors used in the GMC HUMMER EV, Cadillac LYRIQ, Chevrolet Silverado EV and more than a dozen models using GM's Ultium Platform, with a gradual production ramp that begins in 2023.

Neodymium-iron-boron magnets are critical inputs that enable electric motors to transform electricity into motion.

The Rare earth materials sourced from Mountain Pass, California, will be manufactured into magnets at new MP Materials production facility in Fort Worth, Texas.