Sam Boughedda

Investing.com — MP Materials (NYSE:) and General Motors (NYSE:) announced a supply agreement to produce alloy and magnets for GM’s Electric Vehicle programs on Thursday. 

The terms of December’s binding agreement between the two companies were consolidated by this supply agreement. MP Materials will supply rare earth metals, alloys, and finished magnetic materials for electric motors on more than a dozen GM vehicles. Production is anticipated to start in the latter part of 2023.

MP Materials announced that it will increase its capacity to manufacture magnets annually by 1,000 tonnes, which MP Materials estimates could help produce around 500,000 EV-motors. 

MP Materials has also revealed the construction of its first magnet, rare earth metal and alloy manufacturing plant, in Fort Worth Texas.

It hopes that its $700 million investment will restore US supply chains for rare earth magnets.

“The new MP Materials magnetics facility in Fort Worth, Texas, will play a key role in GM’s journey to build a secure, scalable, and sustainable EV supply chain,” stated Executive Director, Global Purchasing & Supply Chain of General Motors, Anirvan Coomer.

MP Materials stock fell 6.3%, while GM was down 1.4%.