On March 13, according to Reuters, tesla Model3 long range version will use permanent magnet motor, the motor is one of the manufacturing materials of rare earth neodymium metal, which will further aggravate the supply pressure of neodymium.
Governments around the world are committed to cutting the harmful emissions from fossil fuel vehicles, pushing up demand for electric cars and metals such as lithium and cobalt.These metals are the key material for the battery.
Now, neodymium is the focus.Several carmakers have adopted a permanent-magnet motor made of neodymium, because they are lighter, stronger and more efficient than induction motors fitted with copper coils.
Tesla’s move to adopt a neodymium permanent magnet motor is a harbinger of future trends in the automotive industry, and the demand for neodymium will become more robust.
Research firm IMARC estimates that the ndfeb magnets used by these motors have a market of more than $11.3 billion.The compound annual growth in demand for such magnets was 8.5 per cent between 2010 and 2017.
Metals consultancy Roskill senior analyst David Merriman (David Merriman) said, “some of the electric car motor, permanent magnet technology has been adopted one of the most famous is the” tesla Model3 version for long life.All other tesla models use induction motors.
Last year, demand for neodymium was very high, with a global demand of 31,700 tonnes and a supply of 3,300 tonnes.Demand for neodymium is expected to rise to 342m tonnes this year, rising to 38,800 tonnes next year, further exacerbating the supply and demand gap.
“Tesla’s decision to choose permanent magnet motors will completely change the dynamics of the market,” said fund managers specialising in metals investments.
The current price of neodymium is about $70 per gram, well below the price of $500 per gram in 2010, but still 40% higher than in early 2017.