The electric vehicle market is booming, with IDTechEx predicting a 4-fold growth in sales over the next decade. However, one key concern in this growth sector is the use of rare earth materials in the magnets of electric motors. Despite the concerns surrounding the supply chain and environmental impact of rare earth materials, a recent IDTechEx report has found that rare earth permanent magnet motors have maintained over 77% of the electric car market over the last 9 years.
China controls the supply of rare earth materials, leading to significant price volatility in the past. This has sparked interest in developing rare earth-free alternatives for electric motors. While progress has been made in this area, permanent magnet motors still remain the dominant technology in EVs due to their performance and cost-effectiveness.
The report predicts that over 140 million electric motors will be needed for the EV market in the coming years, with a decline in the market share of rare earth motors but still maintaining the majority. Companies like Renault and BMW have adopted rare earth-free alternatives like externally excited synchronous motors, but manufacturing costs remain a challenge.
While efforts are being made to develop rare earth-free magnets with companies like Proterial and Niron Magnetics leading the way, the benefits of lower cost and supply stability could eventually shift the market in that direction. However, unless there is a significant improvement in rare earth-free magnets or a regulatory push towards alternative technologies, rare earth permanent magnet motors are likely to retain the majority of the market share in the EV sector.
