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Tesla’s rare-earth-free Cybercab motor claim sparks China EV debate
Analysts said it is still unclear whether Tesla’s rare-earth-free design can match the efficiency and performance of conventional permanent-magnet motors, limiting any near-term shift in supply-chain leverage.
Elon Musk said Tesla’s new self-driving Cybercab uses a motor with no rare-earth metals, a claim that has prompted debate in China about whether the technology could change EV supply chains amid the broader US-China trade and technology conflict. Tesla’s reasoning is linked to rare earth dependence, since the industry has used rare-earth permanent magnets to power electric motors. In response, analysts told the SCMP that meaningful weakening of China’s leverage would be difficult, citing the practical challenge of scaling a rare-earth-free alternative and the fact that rare earths are used across multiple industries beyond EVs.
The discussion followed a Musk social media post noting the motor uses no rare earth metals while maintaining the Cybercab’s range, which he described as extremely hard to achieve, according to the report. David Zhang, general secretary of the Shanghai-based International Intelligent Vehicle Engineering Association, said the approach remains largely a commercial concept and that it is not yet certain the engine can match the efficiency and performance of motors that use rare earth permanent magnets.
Zhang added that Musk’s claim aligns with Tesla’s focus on strengthening supply chain security as the US and China use advanced chips and rare earths, respectively, as leverage. He also said Tesla previously used rare-earth-free AC induction motors before switching to rare earth permanent-magnet motors in mass production with the Model 3 in 2017.