Renault breaks away from Valeo to develop in-house rare-earth-free EV motor

Renault has dropped its plan to develop rare-earth-free electric vehicle motors in partnership with Valeo. Instead, the company is looking for a cheaper Chinese supplier, Reuters has reported.

Companies such as Renault, ZF, General Motors, Valeo, and BorgWarner were previously reported to be developing EV motors that do not require rare earth metals.

The French-headquartered Renault had announced its partnership with Valeo in 2023 and, since then, had been working to develop a more powerful, more compact, and rare-earth-free EV motor under the banner of “an innovation made in France.”

Currently, around 70% of global rare-earth mining is controlled by China, which also holds 85% of refining capacity. After China decided to curb exports, the global EV industry faced a major shock due to the lack of alternative suppliers.

Since 2012, Renault has used rare-earth-free motors. In the now-terminated partnership, Valeo was expected to bring its expertise in using copper wire technology in the stator — the adjoining part of the motor where it is mounted — according to a report by The Times of India (TOI).

“The E7A engine project is no longer being developed with Valeo. It will be done entirely in-house across the entire value chain, except for the stator, which could be sourced from a Chinese supplier,” TOI reported, citing two officials.

A spokesperson for Ampere, Renault’s EV subsidiary, said there is “a possibility of a Chinese partner.”

Valeo has declined to comment on the development.