General Motors and MP Materials Enter Supply agreement to Scale Rare Earth Magnet Sourcing and Production in USA | Financial Buzz

General Motors and MP Materials Enter Supply agreement to Scale Rare Earth Magnet Sourcing and Production in USA

General Motors (NYSE: GM) and MP Materials (NYSE: MP) reported formation of a strategic collaboration to develop a fully integrated U.S. supply chain for rare earth magnets.  The agreement indicates that MP Materials will supply United States sources and manufactured rare earth materials, alloy and finished magnets for the electric motors used in the GMC Hummer EV, Chevrolet Silverado EV, Cadillac LYRIQ and over a dozen models using GM’s Ultium Platform with a gradual production ramp that begins in 2023.  MP Materials owns and operates the Mountain Pass rare earth mine and processing facility in California.  “We are building a resilient and sustainable EV manufacturing value chain in North America, from raw materials to cell manufacturing to electric drive motors and beyond, further accelerating GM’s vision to support a mass market for EVs,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain. “Our work with MP Materials 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.”

“Restoring the full rare earth supply chain to the United States at scale would not be possible without U.S. manufacturers like GM recognizing the strategic consequence and acting with conviction,” said MP Materials Chairman and CEO James Litinsky. “We are proud to welcome GM as the foundational automotive customer for our new magnetics facility and join forces with a company fully aligned with our vision to reinvigorate the American manufacturing spirit.”

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