GM and General Electric Partner for EV Rare Earth Materials

General Motors and GE Partner on Rare Earth Material Supply

Demonstrating a proactive approach to supply chain challenges, General Motors announced on Wednesday the signing of a memorandum of understanding (MOU) with General Electric. This agreement centers on securing the supply of rare earth materials, vital components in the production of electric vehicles and clean energy technologies.

Expanding the Scope of Collaboration

The agreement is non-binding and involves GE’s clean energy division, GE Renewable Energy. Beyond rare earth elements, the partnership will investigate methods to enhance the availability of magnets, copper, and electrical steel.

Focus on North American and European Supply Chains

The initial focus will be on developing a robust supply chain for magnet manufacturing within North America and Europe. Currently, the majority of magnet production is concentrated in nations such as China, Brazil, and India.

Furthermore, the companies will jointly explore alternative supply routes for copper and “eSteel” – a material incorporating recycled content. These materials are crucial for both automotive traction motors and renewable energy generation systems.

Reducing Reliance on Foreign Sources

This collaboration underscores the growing desire among North American automakers to lessen their dependence on foreign nations for essential minerals. The timing is noteworthy, given calls from both President Joe Biden and former President Donald Trump to strengthen domestic mineral sources like copper and lithium.

Advocating for Supportive Policies

The two organizations also intend to work together on shaping public policy. Their aim is to advocate for regulations that foster the development of North American and European-based supply chains for these critical materials.

GM’s Strategic Vision

“A secure, sustainable and resilient local supply chain for electric vehicle materials is critical to the execution of GM’s vision of an all-electric future,” stated Shilpan Amin, GM’s Vice President of Global Purchasing and Supply Chain. “Motors are one of the most important components of our Ultium Platform, and the heavy and light rare earth materials are an essential ingredient in our motor magnets.”

The availability of these materials is paramount to GM’s transition towards a fully electric vehicle lineup.

Key Takeaways from the GM Investor Day:

General Motors recently outlined ambitious goals during its Investor Day presentation, focusing heavily on future growth and technological advancements.

Expanding Revenue Streams Through Subscriptions

A significant component of GM’s strategy involves the development of a substantial subscription-based service. The company is targeting the creation of a business model comparable in scale to Netflix by the year 2030.

Doubling Revenue and EV Market Leadership

GM has publicly stated its intention to achieve a doubling of its revenue by 2030. This growth is projected to be fueled, in part, by an increased share of the electric vehicle (EV) market, with the aim of surpassing Tesla in this sector.

Advancements in Driver Assistance Technology

The introduction of a new, advanced hands-free driver assistance system is planned for 2023. Initial availability of this technology will be offered on Cadillac vehicles.

Affordable Electric Vehicle Options

GM is actively expanding its range of electric vehicles to include more accessible price points. A new, competitively priced crossover is slated for release, with a target price of approximately $30,000.

The company’s growing portfolio will feature a number of ‘really affordable EVs’ designed to broaden market appeal.