GM moves closer to US-made rare earth magnets, boosting EV supply chain resilience

General Motors is on the verge of turning a long-term supply-chain wager into a practical advantage, with the automaker set to begin receiving rare earth magnets from MP Materials after years of work to build a more domestic source of a material critical to electric vehicles.

According to Automotive News, GM’s move was shaped by the disruptions of the COVID-19 era, when shortages exposed how heavily the automotive industry depended on extended global supply lines. Rather than...

simply restore the old model, GM opted to push more of its sourcing closer to home, aligning itself with a “buy where you build” philosophy that has become increasingly important to manufacturers seeking greater resilience.

The partnership with MP Materials dates back to December 2021, when the two companies announced plans to create a fully integrated US rare earth supply chain for electric motors. Under that agreement, MP Materials was to supply rare earth materials, alloy and completed magnets for GM’s Ultium platform vehicles, including the GMC Hummer EV, Cadillac Lyriq and Chevrolet Silverado EV. The plan centred on Mountain Pass in California, the only active large-scale rare earth production site in the United States, and on a new magnet manufacturing facility in Fort Worth, Texas.

That supply arrangement is now approaching a significant milestone. GM Authority reported in September 2026 that GM is preparing to take delivery of its first production rare earth magnets from MP Materials, marking the point at which the agreement begins to move from strategy to supply. The magnets will be made using concentrate mined at Mountain Pass and processed through MP Materials’ Texas operation, giving GM a more regional supply chain for one of the most sensitive inputs in EV motor production.

Rare earths are a group of 17 metallic elements that are widely used in modern technology, from data storage and audio equipment to fibre-optic systems and electric motors. Their scarcity is not always geological but economic: extraction and refining are complex and costly, while production remains concentrated in a handful of countries, particularly China. For carmakers, that concentration creates obvious exposure to geopolitical tension and shipping disruption.

GM’s effort to diversify is not confined to one supplier. In November 2023, GM Ventures announced a partnership with Niron Magnetics to explore Clean Earth Magnet technology for future vehicles, using iron nitride instead of critical rare earth inputs. The company said the work is intended to reduce dependence on scarce materials while supporting a North American-focused EV supply chain. Around the same time, GM was also expanding its regional sourcing strategy through other partnerships, including work with POSCO Chemical in Canada to bolster battery-material production for the continent.

The broader pattern suggests that GM sees supply security as a competitive issue as much as an industrial one. By investing early in domestic rare earth processing, the company has positioned itself to benefit just as demand for EV components continues to rise. What began as a cautious response to pandemic-era disruption is now becoming a structural part of GM’s manufacturing strategy, one that could help insulate its electric vehicle ambitions from the vulnerabilities of the global market.

Source: Noah Wire Services