General Electric and General Motors plan to collaborate on the sourcing of rare materials used to manufacture electric vehicles and renewable energy equipment, the companies announced Wednesday.
The two US industrial giants signed a memorandum of understanding with the goal of establishing "a North America- and Europe-based supply chain of vertically integrated magnet manufacturing that both companies will use in the future," the firms said.
The venture will also "look to collaboratively engage from a public policy perspective" to "seek policies that are supportive of the establishment of secure, North American- and European-based supply chains for rare earth, copper and electrical steel materials needed to support electric vehicle and renewable power generation growth," according to a joint press release.
The announcement comes as GM and other automakers struggle to procure semiconductors amid a global supply crunch that has forced carmakers to reduce or suspend production at some factories.
The struggle over the computer chips has amplified questions about the sourcing of critical materials needed as companies seek to develop new energy and transportation products to address climate change and reduce greenhouse gases.