Major Developments in Rare Earth Elements and Electric Motors in 2025

In 2025, the landscape of rare earth elements, magnets, and electric motors underwent significant changes, with numerous developments shaping global supply chains and technological advancements. The revival of the Mountain Pass mine in California’s Mojave Desert marked a critical step for the United States in the rare earth sector, a market currently dominated by China, which controls between 85% and 99% of global production. This year saw renewed efforts to establish a more independent supply chain for rare earths, essential for various technological and military applications.

The Mountain Pass mine, once a major player in the rare earth market, produced up to 70% of the world’s supply between 1965 and the mid-1980s. However, a series of environmental issues and competition from less regulated Chinese producers led to a decline in operations. In 2025, MP Materials, the company operating the mine, significantly scaled up production of neodymium and praseodymium, rare earth oxides crucial for powerful permanent magnets.

Geopolitical Implications of Rare Earth Production

The revival of the Mountain Pass mine is not just a business development; it has profound geopolitical implications. The Trump administration invested considerable efforts to reduce dependence on China for rare earths, beginning with controversial dealings involving Ukraine, which experts deemed lacking in viable resources. The administration later shifted focus, adopting a strategy similar to that of the Biden administration, emphasizing domestic production and partnerships with allies like Australia and Canada.

Canada is home to significant reserves and operates one of the few large rare-earth oxide refining plants outside Asia. This plant, owned by Toronto-based Neo Performance Materials, is located in Sillamäe, Estonia. The potential to expand production and processing capabilities in Canada could play a pivotal role in diversifying the supply chain.

Technological Innovations in Electric Propulsion and Motors

2025 also witnessed advancements in electric propulsion technologies and motor design. MP Materials announced plans to manufacture neodymium-iron-boron (NdFeB) magnets in the United States, with a substantial agreement with Apple to supply magnets for their devices starting in 2027. This partnership underscores the growing importance of rare earth materials in consumer electronics.

Moreover, researchers at Victoria University in New Zealand made strides in electric propulsion technologies using applied-field magnetoplasmadynamic thrusters. Their innovative approach employs high-temperature superconducting tape to enhance the efficiency of magnetic fields, crucial for future space exploration.

In the aviation sector, startups like Hinetics are exploring the use of high-temperature superconducting materials to create more powerful and efficient electric motors for passenger aircraft. This technology could facilitate the electrification of aviation, a goal that Airbus has aggressively pursued with its ambitious ZEROe project aimed at developing a zero-emission airliner.

The year also saw significant developments in electric vehicle technology, with companies like Donut Lab working on in-wheel hub motors. These motors promise to improve vehicle handling and performance, addressing longstanding challenges associated with unsprung weight.

As 2025 progresses, the dynamics of rare earth production and electric motor technology continue to evolve, reflecting broader trends in global economics and environmental considerations. The interplay between technological innovation and geopolitical strategy will likely shape the future of these critical industries, underscoring the importance of rare earth elements across various sectors.