TREE NEWS reports: General Motors has cancelled its long-term supply agreement with a US manufacturer building a plant to produce rare earth magnets for electric vehicles, with the two parties now in arbitration. GM was the largest customer of the facility. The move reflects a shift in the US auto industry since Donald Trump returned to the White House in 2025 and cut federal support for electric vehicles.
GM Cancels Long-Term Rare Earth Magnet Supply Deal With US Plant
The collapse of the anchor offtake matters beyond one plant: a new domestic magnet facility losing its largest customer at the pre-production stage raises questions about the bankability of US rare earth capacity built around EV demand. The arbitration adds friction to an already fragile supply-chain story, and the cited policy shift suggests the demand backdrop for such projects is being reset. Whether other automakers step in to backfill that capacity, and how the arbitration resolves, are the open questions worth watching.
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