Rare earth elements sourcing – a potential bottleneck for e-motors?

Amid rising concerns about REEs sourcing and in absence of any promising and commercially viable technology, magnet-based motor technology is forecast by S&P Global to be the preferred form of motor technology.

Vehicle electrification is one of the crucial ways in which countries around the world are planning to meet their decarbonization targets and green goals. As of 2023, there are 11.8 million battery-electric vehicles (BEVs) in operation globally, which is projected to reach 44.8 million by 2030 and 65.66 million by 2035. In addition to batteries, e-motors play a critical role in ensuring the driving range and performance of a BEV. An e-motor with high power density and high efficiency can reduce the size of battery needed in a BEV, thereby reducing the overall cost of BEVs. E-motors used in electric vehicles (EVs) must possess the following characteristics: • Low weight • Low cost • High efficiency • High power density • Small/compact size • Ability to operate at higher temperatures