7/103 sources · 3 publishersUpdated Oct 23, 04:35 UTC
General Motors terminates long‑term rare‑earth magnet supply deal with Vacuumschmelze
General Motors cancelled its strategic sourcing agreement with Germany's Vacuumschmelze (VAC) for permanent magnets from VAC's new South Carolina plant. The termination, effective July 1, triggered arbitration by VAC’s U.S. unit seeking damages. Energy Fuels, which is acquiring VAC for $1.9 billion, said the dispute could lead to adjustments to the purchase price.
Why it matters
Energy Fuels disclosed that the arbitration outcome may affect the $1.9 billion acquisition price (). The loss of GM’s demand, which represented about 90 % of the plant’s planned output, creates commercial uncertainty for the magnet facility.
Key facts
- 1GM terminated the strategic sourcing agreement on July 1. marketscreener.com
- 2VAC’s South Carolina plant cost $500 million to build. marketscreener.com
- 3The plant has a capacity of just under 2,000 metric tons of permanent magnets per year. marketscreener.com
- 4Around 90 % of the plant’s output was earmarked for GM. marketscreener.com
- 5Energy Fuels agreed in June to acquire VAC for $1.9 billion. marketscreener.com
- 6Energy Fuels said the purchase price could be adjusted depending on the arbitration outcome. marketscreener.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.