Photo: General Motors
As automakers everywhere try to find a leg up on the competition, General Motors is securing its future by partnering with VAC, a large-scale magnet manufacturing firm. The deal will see a new magnet factory built in the USA, with production beginning in 2024.
VAC, or Vacuumschmelze as its formally known, has been around for nearly a century. In that time, it's grown into one of the foremost magnet producers in the western hemisphere. They specialize in advanced magnetic materials, including those used in electric motors.
That's where this partnership could pay off in a big way for General Motors. As they scale their EV business, they'll need to keep costs low wherever they can. Currently, they're hoping to double their annual revenue by 2030.
That includes a huge increase in spending on EV products and infrastructure, so this deal comes as no surprise. As soon as the plant is in full-scale production, it can be used to bolster sales of the Hummer EV, the Cadillac Lyriq, and the upcoming Silverado EV.
“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.
"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 continued.
This announcement also falls in line with other recent GM developments, including the promise to spend $35 billion dollars towards EV development by 2025 and to launch 30 EVs globally by the same date.
We look forward to seeing if General Motors can generate and then keep up with the same huge demand for EVs that other brands like Ford are dealing with.
That's where this partnership could pay off in a big way for General Motors. As they scale their EV business, they'll need to keep costs low wherever they can. Currently, they're hoping to double their annual revenue by 2030.
That includes a huge increase in spending on EV products and infrastructure, so this deal comes as no surprise. As soon as the plant is in full-scale production, it can be used to bolster sales of the Hummer EV, the Cadillac Lyriq, and the upcoming Silverado EV.
“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.
"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 continued.
This announcement also falls in line with other recent GM developments, including the promise to spend $35 billion dollars towards EV development by 2025 and to launch 30 EVs globally by the same date.
We look forward to seeing if General Motors can generate and then keep up with the same huge demand for EVs that other brands like Ford are dealing with.
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