Tesla’s two-year-old patent is drawing renewed market attention.
This is because the patent contains technology that can drastically reduce the use of rare earth elements in electric motors, a core component of electric vehicles. As China tightens its control over rare earth exports, supply chain risks are growing, and the auto industry is expected to ramp up efforts to reduce its reliance on rare earths—just like Tesla.
Technology news outlet Wccftech recently reported that Tesla’s patent could serve as a potential solution to China’s restrictions on rare earth exports.
The patent, titled “Slitted Magnet for Selective Coercivity, and Methods Thereof,” was filed with the World Intellectual Property Organization (WIPO) on October 31, 2023. It describes a method of precisely drilling small holes in permanent magnets and injecting specific additives to finely control magnetic force and response time.
Until now, rare earth metals—particularly neodymium-based permanent magnets—have been considered essential for increasing the torque of electric motors. These magnets are known to be the strongest type of permanent magnet available, but they are also expensive and difficult to source.
To address supply chain risks, Tesla has been developing technology to eliminate the need for costly rare earth materials. In March 2023, the company announced plans to remove rare earth magnets from its EV motors. While the technology has not yet been commercialized, the patent is now receiving renewed attention following China’s recent export control measures.
On April 4, the Chinese government ordered new restrictions on the export of six types of refined rare earth elements and rare earth magnets. The move is widely viewed as retaliation against U.S. tariffs imposed by President Donald Trump. As rare earths are used in a wide range of industries—including semiconductors and solar panels—U.S. companies are increasingly concerned about potential supply disruptions.
China is the world’s largest producer and holder of rare earth reserves. According to KOTRA, China produced 240,000 tons of rare earth elements in 2023, accounting for 68% of global output. Its dominance in the refined rare earth and permanent magnet markets is estimated to be around 90%.
