General Electric (GE) - Get General Electric Company (GE) Report and General Motors (GM) - Get General Motors Company (GM) Report have agreed to create a supply chain of rare earth and other materials for electric vehicles and renewable energy equipment.
“The initial focus will be on creating a North America- and Europe-based supply chain of vertically integrated magnet manufacturing that both companies will use,” they said.
“Metal alloys and finished magnets produced from rare-earth materials are critical components used in manufacturing electric motors for automotive and renewable power generation.”
The companies also will work together to help establish new supply chains for copper and eSteel, which are used in automotive traction motors and renewable power generation.
"A secure, sustainable, and resilient local supply chain for electric-vehicle materials is critical to the execution of GM’s vision of an all-electric future," Shilpan Amin, GM's vice president for global purchasing and supply chain, said in a statement.
As for Boston-based GE’s take, “Working with GM gives us another tool to obtain reliable, sustainable, and competitive source of key materials going forward that will help us lower the cost of renewable energy and drive more electrification by making EVs a more viable option for consumers,” GE Renewable Energy Chief Technology Officer Danielle Merfeld said.
Shares of GE on Wednesday closed at $104.33, down 0.5% in the regular session. They have slipped 5% over the past six months. GM closed at $53.93, down 0.75%. It has dropped 12% over the past six months.