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Detroit (AP) — General Motors is taking two more steps to secure raw materials for the transition from oil to battery power. This time, we are arranging magnets for electric vehicle motors.
The company said Thursday that it has signed a contract with MP Materials to supply rare earth metals and finished magnets for motors from its new plant in Fort Worth, Texas, in 2023.
We are also in talks to build a US plant to manufacture motor magnets for electric vehicles in a joint venture with Vacuumschmelze (VAC) in Germany. Production will begin in 2024 and the two companies said they will create “hundreds of new jobs.”
Both companies did not announce the financial terms of the transaction. Shilpan Amin, GM’s head of purchasing and supply chain, said he has a parts supply contract with MP Materials without GM’s capital investment. The capital structure of the venture with VAC is still under consideration, but the two companies said they would build a plant together.
Currently, there are no factories in the United States equipped to mass-produce motor magnets for electric vehicles, Amin said. MP said 90% of its supply now comes from China.
This move happens when automakers are scrambling to align parts supplies that are expected to make a dramatic shift from internal combustion engines to zero-emission power over the next decade. For example, GM aims to sell only electric passenger cars by 2035.
LMC Automotive consulting firms expect sales of new fully electric vehicles in the United States to reach nearly 400,000 units this year, nearly double last year. However, it still accounts for only about 2.6% of sales. However, the company expects sales to exceed 730,000 next year and to exceed 2 million by 2025. Even with 2 million EVs, EV sales are only about 12% of new car sales in the United States.
MP Materials has the potential to supply magnets to about 500,000 EV motors annually, Amin said. Together, the two deals will supply all of GM’s magnet needs, at least in the short term, the company said.
MP said engineering and design work for the new 200,000-square-foot factory is underway and will employ more than 100 people. The factory’s products will also be used in the clean energy, electronics and defense markets, the company said.
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GM signs supply contract for motor magnets for electric vehicles | WGN Radio 720
Source link GM signs supply contract for motor magnets for electric vehicles | WGN Radio 720