GM Cancels Long-Term Rare Earth Magnet Supply Deal With VAC, Clouding Energy Fuels' $1.9 Billion Acquisition

General Motors Co. (GM) has terminated its long-term supply agreement with e-VAC Magnetics, the U.S. subsidiary of German magnet maker VAC, throwing into doubt Energy Fuels Inc.'s (UUUU) proposed $1.9 billion acquisition of VAC. The automaker quietly ended the contract on July 1, 2026, and the two sides are now in arbitration, Reuters reported Friday. The deal had underpinned VAC's U.S. production plans. e-VAC Magnetics was established in late 2025 to produce rare earth permanent magnets for the domestic supply chain, with an estimated value of about $500 million and annual capacity of roughly 2,000 metric tons. VAC CEO Erik Eschen said at the time that about 90% of the unit's magnet output would go to GM, with the remainder for the U.S. government. GM's exit has prompted Energy Fuels to say it will adjust the acquisition price. Energy Fuels, which proposed the deal in June, had said the purchase would make it one of the world's largest non-Chinese magnet manufacturers. Reuters attributed GM's decision to a shift in U.S. electric vehicle policy after the Trump administration scrapped EV incentives and tax credits in September 2025, prompting the automaker to scale back EV production and sales.