General Motors reached an agreement with a supplier for these electric vehicle motor magnets
GM has now officially announced two more steps towards transitioning to battery power. First, they’ve picked out very powerful magnets for their vehicles.
General Motors has taken a few steps to make sure it has the raw materials for the transition from fossil fuels to electric power, this time lining up magnets for electric vehicle motors.
On Thursday, the company revealed a deal with MP Materials to supply rare earth metals and finished magnets for the motors from a new factory in Fort Worth, Texas. This plant will begin construction by 2023.
Staying tuned in to the latest happenings along with global marketplace trends is essential for any business hoping to thrive. Vacuumschmelze (VAC) of Germany has agreed to create a factory within the United States, which will create “hundreds of new jobs.”
Companies made a couple of strategic investments without revealing the financial terms. GM’s head of purchasing and supply chain said they have an agreement with MP Materials, but it doesn’t require GM capital investment. VAC and their partners are still determining the concrete plans of whether or not they should build a plant at all, but they’re very excited about its potential.
Automakers are increasingly becoming interested in the future of transportation, and have a lot of work to do to get vehicles ready. Some familiar names might be transformers, motors, and gas engines, with production for these products ceasing completely by 2025 due to the shift towards electricity.
Automakers are partnering with companies like LMC Automotive to create more electric cars. And sales are increasing dramatically across the world, expected to be near 400,000 this year! EV vehicle sales are still at a small percentage of the market. However, the firm is projecting them to grow to about 730,000 by next year and 2 million by 2025. Even if they only account for 12%, that’s still a significant number.
MP Materials has the potential to supply 500,000 EV motors a year, which is enough for GM’s needs at least for the near term.