Powertrain 2020 - The Future Drives Electric (PDF ... - Roland Berger

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4.2.2 Raw materials for electric motors and other EV components
The rare earth elements needed for permanent magnet electric motors
are strongly concentrated in China. According to the Mineral Commodity
Summaries published by the US Geological Survey, China controls 93%
of rare earth production and its reserves account for 31% of the total
worldwide. As demand for this raw material increases, China recently
imposed export restrictions on rare earths, resulting in higher prices and
stronger dominance of Chinese players.
To avoid higher raw material costs, electric motor producers are likely to
promote the development of permanent magnet motors using alternative
substances or less rare earth material. They will most likely also focus on
developing electric motors featuring induced electro magnetic fields (see
Chapter 2). This will open up the field for new players such as Brusa AG
in Switzerland.
4.3 Parts and components
With the electrification of the vehicle powertrain, components such as
batteries, electric motors, AC/DC and DC/DC converters, power electronics
and other auxiliary systems will enjoy much higher growth rates than
other areas in the automotive industry. Electrification will also mean that
other components such as air-conditioning units, water pumps, brakes and
steering systems will have to be adapted to make the overall vehicle system
as efficient as possible.