General Motors cancelled a long-term supply deal with VAC’s US magnet plant, which had been built to sell 90% of its nearly 2,000 metric tons of annual output to GM. VAC is seeking damages in arbitration, and Energy Fuels said the outcome may affect its $1.9 billion purchase price for VAC.
General Motors cancelled a long-term agreement to buy permanent magnets for electric vehicles from VAC’s US unit, e-VAC Magnetics, and the companies are in arbitration. GM said in a filing that a supplier of an EV traction-motor component had initiated arbitration seeking damages after GM terminated a strategic sourcing agreement; a person familiar with the matter confirmed GM was the customer.
VAC opened its $500 million South Carolina plant late last year, with capacity of just under 2,000 metric tons of magnets annually. VAC had planned to sell 90% of its output to GM, which the companies said when they announced the deal in 2023 would support GM for at least 10 years. Energy Fuels, which agreed in June to acquire VAC for $1.9 billion, said the purchase price may be adjusted depending on the arbitration’s outcome.
The dispute first arose in April 2026, Energy Fuels said in regulatory documents. GM took a $6 billion charge in January to unwind some EV investments, and Energy Fuels said it was aware of the dispute while negotiating its acquisition of VAC.
