General Motors Partners MP Materials to Source Rare Earth Permanent Magnets

General Motors (GM)' partnership with MP Materials will enable it to source domestically developed rare earth permanent magnets for the company's Ultium Drive electric motor. MP Materials director Randall Weisenburger has bought millions of dollars of the company's stock following a supply agreement with General Motors earlier this month, causing its share price to soar.

MP Materials owns and operates the Mountain Pass Mine in California, the only active large-scale rare earth production site in the United States. GM's partnership with the company will allow it to source domestically developed rare earth permanent magnets for its Ultium Drive electric motor, which will be used in future electric vehicles such as the GMC Hummer EV, Cadillac Lyriq and Chevrolet Silverado EV, among others. Production of rare earth materials for GM is expected to begin in early 2023 with limited capacity.

Commenting on the deal with MP, the company explained, "This strategic partnership is designed to accelerate the restoration of the U.S. rare earth supply chain to a commercial scale that is highly resilient and environmentally sustainable."

In addition to the rare earth supply deal, GM and MP said they will also seek to "collaborate from a public policy perspective, seeking policies that support the establishment of a secure U.S. rare earth supply chain. Most rare earth mining currently occurs abroad, but MP Materials Chairman and CEO James Litinsky said the partnership will help bring more rare earth mining and manufacturing to the United States.

"Without U.S. manufacturers like GM recognizing the strategic consequences and acting with determination, it will be impossible to restore the complete rare earth supply chain in the United States on a large scale," Litinsky said. General Motors’s goal is to deliver world-class customer experiences at every touchpoint and do so on a foundation of trust and transparency.

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