Why electric motor makers are moving away from rare-earth magnets

The electric motor industry is increasingly moving away from reliance on rare-earth (RE) magnets, particularly neodymium-iron-boron (NdFeB) magnets, due to supply-chain vulnerabilities and geopolitical risks. Currently, about 95% of new electric vehicle (EV) motors use rare-earth magnets, most of which are sourced from China, a dominant player controlling roughly 70% of rare-earth mining and 90% of permanent-magnet production. Chinese export restrictions and price volatility have exposed automakers to significant strategic risks, prompting companies like BMW, Volkswagen, GM, Nissan, and suppliers such as Aptiv and BorgWarner to explore rare-earth-free motor designs. These alternatives include induction, wound-field, switched-reluctance, and other magnetless motors, with projections indicating a 15% annual growth in demand for rare-earth-free motors and a potential tripling of their market share by 2037. Despite the push for rare-earth-free motors, there are notable trade-offs in performance