VAC confirms long-term supply agreement with GM for North America permanent magnet production
February 8, 2023
Vacuumschmelze GmbH & Co. KG (VAC), a producer of advanced magnetic materials and rare earth permanent magnets headquartered in Hanau, Germany, has announced a binding long-term supply agreement with General Motors for North American permanent magnet production. The news follows a non-binding Memorandum of Understanding (MoU) between the companies – first announced in 2021 –and will see VAC build a facility in North America to manufacture permanent magnets for the electric motors used in GM’s portfolio of electric vehicles.
With 100 years of experience, VAC is a leading global developer and producer of advanced magnetic solutions and reportedly the largest producer of rare-earth NdFeB permanent magnets in the Western Hemisphere.
“The demand for rare earth permanent magnets and supporting technologies is intensifying at an unprecedented rate as the world shifts to sustainable clean energy. VAC is extremely excited to be partnering with General Motors to take this important step to ensure the realisation of GM’s all-electric future,” stated Dr Alexander Barcza, VAC VP – Permanent Magnets.
VAC is in the process of establishing a North American rare-earth permanent magnet production facility to support GM for a minimum period of ten years. The finished magnets will be delivered to facilities building EV motors for GM within North America. The VAC facility is expected to start production in 2025 and create hundreds of new jobs.
“Our agreement with VAC for permanent magnet production in North America represents another major milestone in building a strong, secure, sustainable and cost-competitive supply chain to support our EV growth,” added Jeff Morrison, GM VP – Global Purchasing and Supply Chain.
Scott Pelhank, VAC VP – Sales, concluded, “GM’s leadership in recognising the need to develop a resilient North American supply chain creates additional resources to ensure all regions of the world will have sufficient access to core elements and technology to pivot to a cleaner global future. We are thrilled to be a part of it.”
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