Advanced Magnet Source: Tesla’s Revolutionary Move  Navigates Shift in Rare Earth Dynamics

In a pivotal announcement during Tesla’s recent Investor Day event, Colin Campbell, Tesla’s VP for Powertrain Engineering, declared a groundbreaking shift in the electric vehicle giant’s next-generation powertrain. The revelation sent shockwaves through the stock market, particularly impacting rare earth miners in China. 

Campbell disclosed that Tesla’s upcoming powertrain would utilize a permanent magnet motor with zero rare earths—an unprecedented move that aligns with Tesla’s reputation for speed and innovation. The next drive unit, set to propel the next-generation vehicle, boasts a remarkable 75% reduction in silicon carbide, ensuring enhanced efficiency. Moreover, the unit is designed to be compatible with any battery chemistry, with production processes showcasing a remarkable 50% reduction in factory footprint.

Tesla’s strategic move towards minimizing the use of rare earths is driven, in part, by concerns over the materials’ health and environmental risks. Campbell highlighted the diminishing reliance on rare earths in Tesla’s vehicles, citing the Model Y as an example. While the Model Y currently utilizes three types of rare earths, the next-generation permanent magnet motor aims to completely eliminate the use of rare earths.

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