Renault is looking for a supplier of motors that do not use rare earth materials from China.

France's Renault has terminated its project with Valeo to create a new electric vehicle motor that does not use rare earth materials, opting instead to seek a more affordable supplier from China, according to two sources who spoke to Reuters.

Various automakers, including Renault and General Motors, along with suppliers like ZF and BorgWarner, have been working on developing electric vehicle motors that are free of rare earth elements.

In late 2023, Renault announced it was collaborating with Valeo on a more powerful and compact electric motor devoid of rare earths, labeling it "an innovation made in France."

With China controlling 70% of global rare earth mining and 85% of refining, the country’s increasing export restrictions on these materials have prompted the industry to search for alternative supplies.

Renault has utilized rare-earth-free motors since 2012, and Valeo contributed expertise in stator technology using new copper wire advancements.

One source indicated, "The E7A engine project is no longer being done with Valeo," adding that it would be developed entirely in-house, except for the stator, which may be sourced from a Chinese supplier.

This decision to cut Valeo from the project and look for a less costly Chinese supplier has not been reported before. Both sources mentioned that this shift was motivated by cost-cutting, as Chinese suppliers offer highly competitive pricing.

A spokesperson for Ampere, Renault's electric vehicle subsidiary, stated that partnering with a Chinese supplier is a possibility, but no decision has been finalized, and "the process is still ongoing."

Valeo declined to comment.

Despite the potential involvement of a Chinese firm for the stator, the motor will still be produced at Renault's facility in Cleon, France, with silicon carbide modules supplied by Franco-Italian company STMicro for the inverter.

The Ampere spokesperson noted, "We are studying the possibility of locating (the stator) in France."

As a smaller player among traditional car manufacturers, Renault has formed multiple partnerships in recent years to manage the costs of developing electric vehicles. It has also sought suppliers in China, a leader in EV technology, including a Chinese team that helped develop the new electric Twingo within two years.

The planned rare-earth-free motors aim to power Renault's next generation of compact electric vehicles by 2028, central to a strategic plan that CEO Francois Provost is expected to unveil in March.

The E7A motor will provide 200 kW of power, representing a 25% increase over current models like the Scenic, and will have significantly reduced charging times due to its 800-volt system, double that of current Renault EVs.

Valeo continues to collaborate with German supplier Mahle on its own magnet-free "iBEE" electric motor, targeting a power output of up to 350 kW and scheduled for market release in 2028.