General Motors has introduced many new technologies to the auto industry, including the electric starter, automatic transmissions, and catalytic converters. However, one of its lesser-known innovations is the rare earth permanent magnet. Although GM did not develop the first rare earth magnets, it did independently develop new permanent magnets based on neodymium in the 1980s.
These magnets had limited applications at the time, but by 1986, GM had a new division called Magnequench that began producing magnets in Indiana. The magnets were based on a neodymium alloy, which had more powerful magnetic fields than natural magnets.
Rare earth metals, despite their name, are not actually rare. There are 17 elements known as rare earths, which have distinct magnetic, electrical, and luminescent properties. However, these elements are rarely concentrated enough to make extraction commercially viable, which is why they seem rare.
The mine was originally opened in 1949 for uranium but later found to have usable quantities of 15 of the 17 rare earth elements. It is likely that the mine provided the neodymium used by Magnequench in the 1980s and 1990s.
GM’s Decision to Sell Magnequench
In the mid-1990s, GM began divesting non-core parts of its business, including Magnequench, which was sold to Chinese investors. The new owners expanded production outside of the US, mostly in China, and by 2000, the original Indiana factory was shuttered.
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The sale of Magnequench marked a significant shift in the global supply chain for rare earth magnets. With the majority of production now in China, companies like GM were left to rely on imports for these critical components.
Fast forward to 2020, when GM was facing a lack of key components and materials due to the COVID-19 pandemic. The company decided to shift its strategy from globalization to “buy where you build,” or local for local production.
MP Materials was able to raise capital and build a factory in Fort Worth, Texas, with the help of GM’s commitment to purchase a certain amount of magnets. The company hired experts and established a magnetics business, which began producing automotive-grade magnets.
The production process involves several stages, including processing the ore to get the right set of elements, creating a metal alloy, and then turning it into a magnet.
The NdPr oxide is then converted into a metal through an electrolysis reaction, mixed with other materials, and then goes through a process called strip casting. The resulting flakes are collected and then broken down into a fine powder, which is used to create the final magnet product.
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MP Materials’ new magnetics business is a significant development in the production of rare earth magnets, which are critical components in electric vehicles. With the help of GM’s backing, the company is able to establish a domestic supply chain for these magnets, reducing reliance on Chinese imports.
The partnership between GM and MP Materials is a strategic move to secure a stable supply of rare earth magnets, which are essential for the production of electric vehicles. As the demand for EVs continues to grow, the need for a reliable and domestic supply of these critical components becomes increasingly important.
Permanent magnet motors are generally more efficient and produce more torque than induction motors, but they require the use of rare earth elements, which have been largely sourced from China in recent years.
The company is using a custom-designed hopper to collect the flakes of magnet material, which are then broken down into a fine powder using a jet mill.