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- VACsigns long-term supply agreement with GM for permanent magnet production in North America for electric vehicles
VACsigns long-term supply agreement with GM for permanent magnet production in North America for electric vehicles
– VAC has signed a long-term supply agreement with GM for permanent magnet production in North America for electric vehicles.– VAC will establish a North American facility to manufacture these magnets, with production expected to start in 2025.
VAC and GM have solidified a long-term agreement for North American permanent magnet production, a significant move towards establishing a sustainable supply chain for electric vehicles. Under this agreement, VAC will construct a North American facility to manufacture permanent magnets for electric motors used in various EVs, including Chevrolet Silverado EV, Blazer EV, Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV SUV and Pickup.
The facility will utilize locally sourced raw materials. This arrangement finalizes a Memorandum of Understanding (MoU) announced by VAC and GM in December 2021. VAC, with its century-long experience, is a leading developer and producer of advanced magnetic solutions and the largest producer of rare-earth NdFeB permanent magnets in the Western Hemisphere.
VAC Vice President Permanent Magnets, Dr. Alexander Barcza stated, “The demand for rare earth permanent magnets and supporting technologies is intensifying at an unprecedented rate as the world shifts to sustainable clean energy. VAC is extremely excited to be partnering with General Motors to take this important step to ensure the realization of GM’s all-electric future”.
The company is currently setting up a North American rare-earth permanent magnet production facility to support GM for at least 10 years. The finished magnets will be delivered to facilities building EV motors for GM within North America. The facility is projected to commence production in 2025, creating hundreds of new jobs.
Jeff Morrison, GM Vice President, Global Purchasing and Supply Chain said, “Our agreement with VAC for permanent magnet production in North America represents another major milestone in building a strong, secure, sustainable and cost-competitive supply chain to support our EV growth”.
VAC Vice President Sales, Scott Pelhank stated, “GM’s leadership in recognizing the need to develop a resilient North American supply chain creates additional resources to ensure all regions of the world will have sufficient access to core elements and technology to pivot to a cleaner global future. We are thrilled to be a part of it”.
This agreement between VAC and GM will significantly bolster the EV supply chain, accelerating the shift towards sustainable clean energy in the automotive industry.