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General Motors Bets On Rare Earth Magnets With 2 Big Partnerships

General Motors Big Partnerships

By Quantale. IO- Real Time Stock Market MonitoringPublished 2 years ago 3 min read
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General Motors made a couple of new announcements on Thursday regarding its ambitious switch from petroleum to battery power.

The company announced that it cracked a deal with MP Materials to furnish rare earth metals and finished magnets for the electric motors from a new production facility to be set up in Fort Worth, Texas, beginning in 2023.

“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.”

It has also joined hands with Vacuumschmelze (VAC) of Germany to build a plant in the U.S. that will make permanent magnets for the electric motors.

Production is expected to kick off in 2024 and will create hundreds of new jobs, the companies said in a statement.

The companies did not reveal the financial terms of the deal.

“We are building a resilient and sustainable EV manufacturing value chain in North America from raw materials to components to drive GM’s growth and support a mass market for EVs,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain in a statement.

“Our work with VAC 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,” he added.

The initiatives come as manufacturers are paving ways to line up parts supplies for what is projected to be a substantial transition away from internal combustion engines and toward zero-emission electric power over the next decade. By 2035, General Motors, for example, wants to sell only electric passenger vehicles.

The LMC Automotive consulting firm sees U.S. sales of new fully electric vehicles to clock 400,000 this year, almost twice from last year’s numbers. But that is only about 2.6% of sales.

On the other hand, GM projects the sales to cross the 730,000 mark next year and more than 2 million by 2025. Even at 2 million, EV sales would only reflect 12% of U.S. new vehicle sales.

General Motors Bets On Rare Earth Magnets With 2 Big Partnerships

On the dashboard of Quantale, the impact of the two big announcements on the social engagement for the stock amongst the users of Twitter and Reddit will be printed as the day proceeds.

On Wednesday, General Motors stock activity fell 35.27%, combined with a decrease of 31.06% in the trading volume. The stock also saw a fall of 1.22% in the per-share price. It closed the market at $60.78 apiece.

General Motors shares may not have been impacted by the partnership today but, MP Materials shares have certainly gained some marks from the deal.

The shares of General Motors opened at $60.38 apiece, down 0.6% from the previous day’s market close of $60.78. MP Materials opened the market at $47.79, up 8.22% from last day’s close of $44.16.

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Quantale. IO- Real Time Stock Market Monitoring

Quantale Is US Based Stock Market Monitoring Company Who Gives Right Suggestion and How To Invest in Stock Market

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