Update: Market Chatter: GM Terminates Rare-Earth Magnet Supply Agreement with VAC

01:51 PM EDT, 10/23/2026 (MT Newswires) -- (Updates with Energy Fuels comment starting in the fifth paragraph.) General Motors (GM) canceled its long-term rare-earth magnet supply agreement with e-VAC Magnetics, the US unit of Germany-based Vacuumschmelze, or VAC, leading to an arbitration dispute over the contract, Reuters reported Friday, citing regulatory documents and a person familiar with the matter. Energy Fuels (UUUU), which agreed to acquire VAC for $1.9 billion in June, said in a filing last week that a customer terminated its supply agreement on July 1. E-VAC Magnetics initiated arbitration proceedings, seeking payments owed for the remainder of the contract, the filing said. Energy Fuels said the outcome of the arbitration could lead to an adjustment in the purchase price for e-VAC Magnetics. In an email to MT Newswires, an Energy Fuels spokesperson said the company was aware of the dispute before agreeing to acquire VAC and could not comment on details because the case is in arbitration. "We have no concerns about VAC's commercial prospects, manufacturing capabilities, and ability to meet customer specifications," the spokesperson said GM and e-VAC did not respond to requests for comment. GM shares fell 2.1% in Friday trading, and Energy Fuels dropped 2.3%. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.) Price: 75.61, Change: -1.60, Percent Change: -2.07