GM and Vacuumschmelze, based in Germany, plan to build a U.S. plant to manufacture permanent magnets for the electric motors used in GM’s Ultium-powered EVs, including the Hummer EV, Cadillac Lyriq and electric Chevrolet Silverado. The plant will use locally sourced raw materials to produce the magnets, GM said in a statement Thursday.
“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,” Shilpan Amin, GM’s vice president for global purchasing and supply chain, said in statement. “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.”
GM expects the plant to start production in 2024 and create hundreds of new jobs. The terms of the agreement are expected to be finalized early next year. GM has not disclosed the location of the factory. The magnets will supply plants that build EV motors for GM EVs.
VAC is the leading producer of advanced magnetic materials globally, according to the statement.
“As VAC’s Permanent Magnet Division is the only industrial scale producer of rare earth permanent magnets in the Western Hemisphere, VAC brings reliable scale and experience to GM’s supply chain,” Dr. Erik Eschen, CEO of VAC, said in the statement. “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.”
