General Motors took a US$6 billion charge in January to unwind some of its electric vehicle investments. (EPA Images pic)LONDON: General Motors (GM), the biggest customer of a US factory making rare earth magnets for electric vehicles (EVs), cancelled its long-term supply deal with the manufacturer, and the two sides are in arbitration, according to regulatory documents and a person with knowledge of the situation.
The move spotlights the challenges Western firms face in building domestic rare-earths output and cutting their reliance on China, which produces about 90% of global permanent magnets.
It also shows how the US auto industry's landscape has changed since Donald Trump returned to the White House in 2025 and cut federal support for EVs.
