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Sustainable acquisition of e-motor materials, supply chain implications

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AutotechInsight Analysis Monthly

Designing improved logistics and addressing the price volatility of rare earth elements is critical to the survival of the EV industry

Automakers have come under tight scrutiny in the aftermath of the Diesel Emissions Affair. Governments around the world are increasingly introducing and enforcing stringent policies and federal emission targets, which OEMs must achieve to sustain their operations. The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) and the Real Driving Emissions (RDE) norms, being enforced on all new vehicles, are expected to play a crucial role in determining propulsion strategies for all vehicle manufacturers. Automakers have come under tight scrutiny in the aftermath of the Diesel Emissions Affair. Governments around the world are increasingly introducing and enforcing stringent policies and federal emission targets, which OEMs must achieve to sustain their operations. The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) and the Real Driving Emissions (RDE) norms, being enforced on all new vehicles, are expected to play a crucial role in determining propulsion strategies for all vehicle manufacturers. The growing efforts toward electrification of powertrains, at mass-market and luxury vehicle manufacturers alike, highlights a strategic approach towards meeting these stringent emission targets. OEMs are turning to electric propulsion motors (e-motors), which either complement or replace the internal combustion engine (ICE) altogether. The application of e-motors in various hybrid and plug-in electric vehicles (PEVs) is forecast to grow at an exponential rate over the next 4-5 years as the world’s largest electric vehicle (EV) markets, such as China, North America, and Europe, continue to profess a paradigm shift in consumer buying patterns in favor of alternative propulsion solutions.

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