It is reported that Schaeffler signs the first European rare earth deal to ensure the supply of electric vehicle motors – yqqlm

Reuters reported that German auto parts supplier Schaeffler has signed a raw material deal to ensure its booming electric vehicle motor business gets rare-earth magnets from Europe, according to an executive at the German auto parts supplier supply.

It will also be the first rare earth purchase agreement signed by a European auto supplier or automaker in the region.

Currently, the EU is leading a push for domestic production of rare earths and super-strong magnets for electric vehicles and wind turbines to reduce reliance on China, a key supplier.

Schaeffler has reached a five-year agreement with Norway’s REEtec to supply rare earth oxides from 2024, said Schaeffler Chief Operating Officer Andreas Schick.

The deal is understood to be announced on Wednesday, but he declined to disclose the value of the deal.

Andreas Schick said in an interview, “We are transforming into an electric vehicle supplier and are ramping up our production capacity significantly. So, in rare earths, we need strong partners, not only through the standard supply chain in China, but also through China’s standard supply chain. A local supply chain in Europe is needed.”

Automakers planning to massively increase production of electric vehicles have contracted miners for battery raw materials such as cobalt, lithium and nickel in recent years, but such deals have been limited in the rare earths industry.

In December, General Motors reached an agreement to purchase rare earth magnets in the United States.

The European Union, Britain and the United States are scrambling to build domestic rare earth and magnet industries to wean themselves off China. 98% of permanent magnets in Europe are supplied by China.