Quest for alternate e-motor solutions amidst China’s export restriction on rare earth elements

China’s rare earth elements (REE) export restriction is posing challenges to the global REE supply chain and is compelling automakers to look for REE-free e-motor solutions.

Responding to global trade issues, on April 4, mainland China imposed limitations on exporting various medium and heavy rare earth metals such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. The country controls approximately 90% of commercial REE production and its refining process, thereby holding a dominant position in the REE sector. In addition to these metals, the announced restriction also applies to permanent magnets, which could more rapidly disrupt global e-motor production, as mainland China supplies over 90% of the world's demand for rare earth permanent magnets.