MP Materials and General Motors Announce Supply Agreement

By Sam Boughedda -- MP Materials (NYSE:MP) and General Motors (NYSE:GM) announced a supply agreement to produce alloy and magnets for GM's Electric Vehicle programs on Thursday.

The supply agreement solidifies the terms of a binding deal agreed by the two companies in December. The long-term agreement will see MP Materials supply rare earth materials, alloy, and finished magnets for electric motors in more than a dozen GM models, production of which is expected to begin in late 2023.

MP Materials said its annual magnet production capability of 1,000 tonnes will assist the production of approximately 500,000 EV motors.

MP Materials also announced the start of construction at its first rare earth metal, alloy, and magnet manufacturing facility, located in Fort Worth, Texas.

The company hopes its investment of $700 million will help restore the US rare earth magnetics supply chain.

"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 is down 6.3% Thursday, while GM is down 1.4%.

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