Vacuumschmelze Sues General Motors Over Cancelled Magnet Deal

Vacuumschmelze initiated arbitration proceedings against General Motors seeking damages for the wrongful termination of a long-term strategic sourcing agreement. The contract, signed in 2023 between General Motors and e-VAC Magnetics—the U.S. unit of the German manufacturer—was cancelled on July 1, 2026.

Under the original terms, the South Carolina-based plant would have supplied permanent magnets for electric vehicles for at least 10 years, with General Motors committed to purchasing 90% of the facility's annual capacity. The termination follows a broader reduction in electric vehicle investments by General Motors, which included a $6 billion charge in January 2026 after the Donald Trump administration withdrew federal industry incentives and tax breaks.

Energy Fuels Holdings Corp. agreed in June 2026 to acquire Vacuumschmelze for $1.9 billion. The company noted that the final purchase price may be adjusted depending on the outcome of the arbitration between the automaker and the magnet manufacturer.