Tesla’s Plans for Zero Rare Earth EV Motor Could Undermine Beijing’s Secret Weapon—Its Rare Earth Monopoly

Tesla cars are parked in front of a Tesla showroom and service center in Burlingame, Calif., on May 20, 2019. Justin Sullivan/Getty Images

News Analysis

At its 2023 Investor Day presentation in Texas, Tesla revealed its plans to produce its next generation EV motor without any rare earth minerals. As a global leader in the electric vehicle market, Tesla’s plan for zero rare earth permanent magnet motors, if successful, could have a significant impact on the rare earth market—particularly China’s rare earth monopoly.