Renault is in talks with a Chinese supplier to develop electric-vehicle motors that do not rely on rare earth elements, Reuters reported on Monday, in a move that comes as China lifts a nearly year-long ban on exports of gallium, germanium, and antimony to the United States and a day after Beijing said it would suspend new restrictions on rare-earth and battery-metal exports for one year.

Sources told Reuters the French carmaker seeks a long-term technology partnership to replace permanent-magnet motors with copper-based designs already in pilot production in China.

Renault’s current E-Tech hybrid and EV lineup already uses wound-rotor synchronous motors built at its Cléon plant in France, without using rare earths. The proposed Chinese partnership would focus on lowering costs and preparing next-generation rare-earth-free systems for high-volume models.

Last week, Beijing announced new export restrictions on tungsten, antimony, and silver, materials critical to advanced magnets and EV components, describing them as environmental measures. Industry analysts view the controls as part of a broader strategic effort to retain leverage over global supply chains.

China still dominates refining capacity for rare earths and related minerals, accounting for more than 80% of global tungsten production and the majority of rare-earth magnet output. The new rules apply to the 2026-2027 period and could intensify competition for non-Chinese sources and magnet-free motor designs.

Beijing’s latest export controls follow a brief “rare earth truce” with Washington. After agreeing to lift some limits on rare earth exports to the United States, China moved almost immediately to restrict shipments of other key materials such as tungsten and antimony. Efforts in Europe and Japan to rebuild refining capacity remain small in scale, leaving automakers reliant on Chinese intermediate products even when ores are mined elsewhere.

Renault and the prospective supplier declined to comment to Reuters. Industry analysts said automakers are reviewing sourcing plans as China’s new export limits take effect and could influence the price and availability of materials for electric-motor production.

By Michael Kern for Oilprice.com 

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