General Motors, GE Sign MOU to Develop Joint EV and Renewable Energy Supply Chains
DETROIT – General Motors and GE Renewable Energy, a subsidiary of the General Electric Co., have signed an agreement to develop supply chains supporting the manufacturing of electric vehicles and renewable energy equipment.
What both companies are calling a “non-binding memorandum of understanding” in a statement released Wednesday also calls for them to jointly evaluate opportunities to improve supplies of heavy and light rare earth materials.
According to a press release issued by GM, the initial focus of the collaboration will be on creating a North America- and Europe-based supply chain of vertically integrated magnet manufacturing that both companies and their respective suppliers and co-sourcing partners will use in the future.
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 said they will also work together to help establish new supply chains for additional materials, such as copper and eSteel, that 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,” said Shilpan Amin, GM vice president for Global Purchasing and Supply Chain in a statement included in the release.
“Motors are one of the most important components of our Ultium Platform, and the heavy and light rare earth materials are an essential ingredient in our motor magnets. The combined scale of GM and GE will enable us to unlock the potential for securing low-carbon footprint, ESG-friendly, secure and cost competitive materials,” Amin said.
Danielle Merfeld, GE Renewable Energy’s chief technology officer, said, “Working with GM gives us another tool to obtain a reliable, sustainable, and competitive source of key materials going forward.”
Merfeld predicted the agreement will help lower the cost of renewable energy and help make electric vehicles a more viable option for consumers.
“We are also excited to partner with GM to explore opportunities to develop critical supply chains in the U.S. and further reduce CO2 emissions,” her statement concluded.
Both GM and GE Renewable Energy suggest the current MoU could well lead to other cross-company collaborations supporting the development of new technologies and processes for both automotive and renewable power generation applications.