GM–eVAC split highlights demand-side risk in US magnet buildout

General Motors (GM) has cancelled its long-term rare earth permanent magnet (REPM) supply agreement with eVAC Magnetics, the US unit of Germany-based Vacuumschmelze (VAC), prompting an arbitration dispute. It comes following a 29% fall in US EV sales for GM in H1 2026 compared with H1 2025. Filings show a termination notice was issued on 1 July 2026, and eVAC began arbitration days later, alleging wrongful termination and seeking financial compensation. Signed in early 2023, this contract covered a minimum ten-year supply of neodymium-iron-boron (NdFeB) permanent magnets produced at the Sumter, South Carolina, plant with a capacity of 2,000tpa.