Shaeffler signs rare earths deal with hopes to produce its own e-motor magnets

Shaeffler signs rare earths deal with hopes to produce its own e-motor magnets

German auto parts supplier Schaeffler has signed a raw materials deal to ensure the supply of rare earth oxides, which the company is sourcing from REEtec in Norway, needed for the manufacturing of NdFeB magnets.

Blue View

Permanent magnets are the key ingredient in brushless e-motors used to convert energy stored in batteries into torque, or vice-versa for energy generation (e.g. wind turbines). The most powerful permanent magnets currently available are rare earth NdFeB (neodymium-iron-boron), which allow for up to 30% increased motor efficiency compared to induction motor technology. What this means, is that electric vehicles can harness more energy from the battery, allowing either the driving range to be increased for the equivalent battery capacity or the cost to be reduced by reducing the size of the battery.

Currently, the permanent magnet market is dominated by China, with only relatively small capacity installed elsewhere. In Europe, Less Common Metals in the UK is the only producer of bonded NdFeB. However, sintered NdFeB magnets (not bonded) are the key variety of NdFeB magnets that show the higher performance required for the optimisation of EV battery technology. Schaeffler states plans to produce permanent magnets in Europe for the EV motor sector, to break its supply risk on ready-made magnets sourced from China.