The electric vehicle (EV) market is growing, but in 2024, growth slowed down significantly in Europe and the United States. One way to boost growth again is by releasing more affordable models. While batteries often take the spotlight when it comes to cost reduction, other components like the electric motor can also contribute to lowering the overall price of an EV.
According to a report by IDTechEx titled “Electric Motors for Electric Vehicles 2025-2035: Technologies, Materials, Markets, and Forecasts,” the demand for electric motors in EVs is expected to grow in the coming years. By 2035, the report forecasts that more than 160 million electric motors will be required for the EV market, with around 30% of the automotive market using motors that are free from rare earth materials.
One of the key ways that an electric motor can reduce the overall cost of a vehicle is through improving efficiency. The more efficient a motor is, the less energy is required from the battery to power the vehicle, which can help lower battery costs. For instance, if a motor operates at 96% efficiency instead of 93%, the energy needed for a 75 kWh vehicle could be reduced by around 2.9%. This, in turn, decreases the battery cost by the same percentage, saving about $200 for a vehicle with a 75 kWh battery and a cost of $100 per kWh.
Currently, permanent magnet (PM) motors dominate the EV market, accounting for 85% of the motors used in battery electric and plug-in hybrid vehicles in 2023, according to IDTechEx. These motors use rare earth materials in their magnets, which can be costly. Despite making up only a small part of the motor, these rare earth magnets can represent about a third of the motor’s total cost. Prices for these rare earth materials have also been volatile, with the price of neodymium fluctuating significantly over the past decade, sometimes reaching up to five times its minimum value.
Magnet-free motors, such as wound rotor synchronous motors (WRSM) or externally excited synchronous motors (EESM), offer an alternative to PM motors. These motors use copper windings instead of permanent magnets, which reduces the cost of materials. However, they are more expensive to manufacture because of the additional winding and control electronics required. While their efficiency is generally lower in standard test cycles like WLTP, they perform better during high-speed driving. To be cost-competitive, the price of permanent magnet materials would have to be high to make WRSM motors a better option.
Another possible solution for reducing motor costs is the development of rare earth-free magnets. These magnets, such as ferrites or AlNiCo, are cheaper but come with a performance trade-off. While they may be competitive with neodymium magnets in certain properties, they fall short in other key areas, such as power density. This means that a larger motor would be required to achieve the same performance as a motor using rare earth magnets. However, for low-cost vehicles like small city cars, this trade-off might be acceptable, and a lower-performance motor could still be sufficient. That said, the manufacturing costs of the rotor could increase due to the need for more magnetic material to compensate for the performance deficit.
In the future, alternatives to rare earth permanent magnet motors will only be cost-effective if the price of rare earth materials remains high. However, other factors such as environmental concerns and supply chain security are also driving the shift away from rare earths. IDTechEx predicts that by 2035, 30% of the automotive motor market will use magnet-free technologies, up from just 9% in 2023.
One technology that could play a role in reducing motor costs in the future is the axial flux motor. Axial flux motors offer very high power and torque density, which means they use fewer materials per kilowatt of power. Since most of the cost of a motor comes from its materials, this could provide another path to reducing costs. However, axial flux motors are not yet widely manufactured at the scale needed for the automotive market. While their manufacturing process is relatively simple compared to other automotive components, the technology will need to overcome the dominance of radial flux motors and establish strong manufacturing partnerships to gain a foothold in the market. IDTechEx anticipates growth in the axial flux motor market, but it will take time before these motors are produced at the volumes needed for widespread use in automotive applications.
In conclusion, while the price of the electric motor is not the biggest factor in the overall cost of an EV, innovations in motor technology can make a significant difference. As the EV market continues to evolve, the role of motor technologies in reducing costs and improving efficiency will remain important.
