There is a brand-new agreement: la global automotive and industrial supplier Schaeffler has signed a five-year contract with Norwegian company REEtec AS for the purchase of rare earth oxides. The two have established a partnership to decrease the dependence on China precisely for rare earth metals for magnets used in electric motors.
Schaeffler has been producing electric motors on a large scale since 2021 and offers its customers power classes ranging from 20 kW to more than 300 kW. The company is focusing on sustainability along the entire value chain. Emission-free material production is an important step towards climate neutral operations by 2040.
The aim is to make electric motors for hybrid modules, hybrid transmissions and all-electric axle drives even more sustainable. Powerful permanent magnets manufactured using rare earth metals like neodymium produce optimum magnetic flux in electric motors.
In the future, Schaeffler will procure these metals from REEtec AS, which uses a sustainable production process. The partnership will begin in 2024.
Andreas Schick, Chief Operating Officer at Schaeffler AG said: «In REEtec, Schaeffler has gained a highly innovative partner that uses a novel and especially sustainable process for the production of pure rare earth elements. Rare earths play an important role in automotive and industrial segments. Schaeffler is focusing on achieving sustainability along the entire value chain and is systematically gearing its activities to the use of materials produced cleanly and sustainably. Through this partnership, we are also securing our supply of neodymium iron boron magnets for electric motors».
«We are delighted to have signed a five-year contract with Schaeffler and to be partnering with a globally successful market leader that prioritizes sustainability and transparency in the supply chain», instead the words by Sigve Sporstøl, CEO of REEtec AS.