GM and GE agree to develop supply chains to support EV production, renewable energy growth

General Motors Co. GM, -1.60% and General Electric Co. GE, -2.04% said Wednesday that they signed a memorandum of understanding (MOU) to improve supplies of rare earth materials, magnets, copper and electrical steel used in making electric vehicles and renewable energy equipment. The automaker and industrial conglomerate will first focus on creating a North America- and Europe-based supply chain for magnet manufacturing, and will then collaborate on establishing new supply chains for additional materials, such as copper and eSteel. "A secure, sustainable and resilient local supply chain for electric vehicle materials is critical to the execution of GM's vision of an all-electric future," said Shilpan Amin, GM's vice president for global purchasing and supply chain. "Working with GM gives us another tool to obtain a reliable, sustainable, and competitive source of key materials going forward that will help us lower the cost of renewable energy and drive more electrification by making EVs a more viable option for consumers," said GE Renewable Energy Chief Technology Officer Danielle Merfeld. GE's stock fell 1.6% in premarket trading Wednesday and GM shares fell 0.5%, while futures ES00, -0.67% for the S&P 500 SPX, -0.80% shed 1.1%.