MP Materials signs supply agreement with GM

By Sam Boughedda – MP Materials Corp (NYSE 🙂 Shares rose 10% on Thursday on news of the construction of its initial rare earth metals, alloys and magnet manufacturing plant in Fort Worth, Texas. Additionally, and arguably more importantly, the company announced that it has entered into a long-term agreement with General Motors Company (NYSE 🙂 to supply rare earth materials, alloys, and finished magnets.

They will be used for electric motors in more than a dozen models using GM’s Ultium platform, with a gradual increase in production starting in 2023.

The facility will be 200,000 square feet in size and will also serve as the commercial and technical headquarters for the company’s expanding magnetic division, MP Magnetics.

The deal will be applauded by the Biden administration, as the United States needs to ramp up production of rare earths to meet its electric vehicle targets.

The initial facility will be able to produce approximately 1,000 tonnes of finished neodymium magnets per year, with the potential to power approximately 500,000 EV motors per year. In addition, they will also support other markets, such as clean energy, electronics and defense technologies.

“MP Materials has built an exceptional magnetic team and important business relationships that will accelerate our mission of restoring the rare earth supply chain in the United States,” said James Litinsky, president and CEO of MP Materials.

Comments are closed.