By Michael Elkins
Tesla (NASDAQ:TSLA) and CEO Elon Musk held the company’s investor day on Wednesday, where the company announced that Tesla has designed a “permanent magnet motor” that does not use any rare earth materials at all.
Rare earth metals, such as neodymium, dysprosium, and silicon carbide, are commonplace in EVs. They are expensive, produce a lot of waste, and create various mining concerns. And as the world transitions to renewable energies, the cost of rare metals has increased dramatically.
Today, Tesla stated that between 2017 and 2022, it managed to reduce rare earth usage in the new Model 3 drive units by 25% as it increased the efficiency of the drivetrain. By reducing the amount of rare earth metals needed, Tesla can save both money and the environment.
Colin Campbell, vice president of Powertrain Engineering, stated that the company has designed a permanent magnet motor that does not use any rare earth metals.
Shares of MP Materials (NYSE:MP), which is ramping up rare earth production in the U.S., are down 3.88% in after-hours trading on that remark.
Shares of TSLA are down 3.46% after hours after closing down 1.43% on Wednesday.