GM Boosts Rare Earth Magnet Production with Two New Deals

Securing the EV Supply Chain: GM's Investments in Rare Earth Minerals

General Motors is actively establishing a robust domestic supply chain to support its ambitious plans for electric vehicle production throughout the decade. This encompasses securing resources for battery cell manufacturing, cathode active materials, lithium, and even implementing recycling processes to reclaim raw materials from scrap.

Focus on Rare Earth Minerals and Magnets

The automaker is now concentrating on securing a domestic supply of rare earth minerals, alloys, and finished magnets crucial for the electric motors powering its forthcoming EVs. These include models like the GMC Hummer EV, Cadillac Lyriq, and Chevrolet Silverado EV.

This effort involves partnerships with MP Materials and Vacuumschmelze (VAC) of Germany. The outcome will be the construction of two new facilities within the United States, designed to enhance domestic production of rare earth magnets.

The Importance of Magnets in Electric Motors

Magnets are a vital component of electric motors, generating the torque necessary to drive a vehicle’s wheels. GM intends to introduce 30 new EV models globally by 2025 and aims for a fully zero-emission vehicle portfolio by 2035.

For example, the GMC Hummer EV could potentially utilize up to three motors, delivering as much as 11,500 pound-feet of torque.

Partnership with Vacuumschmelze (VAC)

Through its collaboration with VAC, GM will establish a U.S.-based plant dedicated to manufacturing permanent magnets for electric motors. Currently, the agreement between GM and VAC is non-binding.

Executives from GM anticipate finalizing definitive agreements in early 2022, with production slated to commence in 2024. The specific location of the facility will be revealed at a later date.

Mines-to-Magnets Collaboration with MP Materials

The partnership with MP Materials represents a more integrated “mines-to-magnets” approach. Rare earth materials will be extracted and processed at MP Materials’ mine in California.

These materials will then be transformed into metal and magnets at a new 200,000-square-foot facility in Fort Worth, Texas. MP Materials plans to integrate recycling processes at both the mine and the new facility.

The Fort Worth facility is projected to produce enough NdFeB alloy and magnets to power approximately 500,000 EV motors annually. A phased production ramp-up is expected to begin in 2023.

MP Materials and the Mountain Pass Mine

This deal is particularly significant for MP Materials, as it operates the sole active and large-scale rare earth production site in the United States.

The Mountain Pass mine, historically the world’s largest rare earth producer, has changed ownership several times in recent decades. Chevron sold it to Molycorp in 2008, but Molycorp ultimately filed for bankruptcy despite efforts to restart and expand the mine.

MP Materials acquired Mountain Pass in July 2017, inheriting a non-operational site with only eight remaining employees. Since then, operations have been restarted, and by 2020, the Mountain Pass site produced over 38,500 metric tons of rare earth concentrate, accounting for more than 15% of global production, according to the U.S. Geological Survey.

A Shift Back to Domestic Rare Earth Production

This development marks a milestone for proponents of U.S.-based rare earth production. While rare earth materials are globally available, the United States ceased mining them by 2003, opting instead to source them from China.

Currently, China dominates rare earth mining. The initial development of Neodymium-iron-boron (NdFeB) permanent magnets – essential for electric motors – originated in the United States, but China, Brazil, and India are now the primary producers.

China controls approximately 90% of the global sintered rare earth magnet capacity.

Expanding the U.S. Magnet Supply Chain

The Fort Worth facility will also supply NdFeB alloy flake to other magnet producers, fostering a diverse and resilient U.S. magnet supply chain. GM and MP Materials indicate that the facility will utilize less than 10% of the 6,075 tonnes of NdPr oxide expected to be produced annually at Mountain Pass.

Collaboration with GE Renewables

In October, GM announced a non-binding agreement with GE Renewables to collaborate on the supply of rare earth materials and explore improvements in the supply of magnets, copper, and electrical steel.

The companies also expressed intentions to develop new supply chains for copper and “eSteel” – a material incorporating recycled components – for use in automotive traction motors and renewable power generation.

A GM spokesperson confirmed that these collaborative efforts are ongoing, stating that “collaboration is an important component of building a strong, resilient and scalable North America-focused EV supply chain. We are still in the process of finalizing definitive agreements.”