GM Terminates Supply Contract with U.S. Rare-Earth Magnet Plant, Casting Shadow on Effort to End China Reliance

GM reported $3.3B net income for Q3 and authorized a $20B share buyback. Its lending arm, GM Financial, increased its loan loss provisions by 39% to $340M, citing rising delinquencies. Ford and Stellantis also faced significant EV-related charges and financial strains in their lending arms.

General Motors (GM) terminated a long-term supply deal with VAC for EV magnets, leading to arbitration. VAC's U.S. unit seeks damages, claiming wrongful termination. The 2023 agreement was for a $500M South Carolina plant, with 90% output for GM. Energy Fuels, acquiring VAC, notes the dispute may affect the $1.9B deal. GM has scaled back EV sales amid reduced incentives.

GM terminated a supply agreement with e-VAC Magnetics, seeking arbitration. The dispute follows GM's broader EV pullback, including a $6B charge in January 2026. e-VAC, part of VAC, alleges wrongful termination and seeks damages. Energy Fuels, acquiring VAC, faces uncertainty due to the dispute.

GM terminated a supply agreement with VAC's $500M South Carolina rare-earth magnet plant, raising demand uncertainty. VAC seeks damages via arbitration. GM's EV business scaling back. Energy Fuels' $1.9B VAC acquisition may be affected.

GM is in arbitration over a terminated EV component agreement, affecting Energy Fuels' $1.9B VAC deal. The deal's value may adjust based on arbitration outcomes, with customer concentration and contract certainty now key factors.

General Motors (GM) terminated a long-term supply deal with Vacuumschmelze (VAC) for rare-earth magnets, leading to arbitration. VAC, set to be acquired by Energy Fuels, supplied 90% of its US plant's output to GM. The dispute highlights challenges in reducing reliance on China for rare-earth materials and the shifting US EV industry landscape.