【By Observer News, Yuan Jiaqi】

On the 10th, Reuters cited two sources who said that Renault Group has terminated a joint project with Valeo Group to develop a new rare-earth-free electric vehicle motor, and is now seeking cost-effective Chinese suppliers. Renault said it does not rule out the possibility of cooperation with Chinese partners. Valeo refused to comment.

According to reports, automakers including Renault, General Motors of the United States, and BMW Group of Germany, as well as suppliers such as German ZF, American BorgWarner, and Valeo, are all advancing the development of electric vehicle motors that do not require rare earth elements.

Renault has been using rare-earth-free motors since 2012, while Valeo has provided specialized support in the stator field by means of its new copper wire technology. At the end of 2023, Renault announced a collaboration with Valeo to develop a new rare-earth-free motor with higher power and a more compact size, which it called "an innovative achievement of French manufacturing."

It is reported that the motor, codenamed E7A, will reach a power of 200 kilowatts, an increase of 25% over the current motors in Renault's models, and will be equipped with an 800-volt voltage system, twice the voltage of current Renault electric vehicles, significantly reducing charging time.

"The E7A motor project is no longer being developed with Valeo, and the entire value chain will be completely handled internally by Renault, with only the stator possibly sourced from Chinese suppliers," a source told Reuters. Both sources pointed out that cost control is the core reason for this change, with Chinese suppliers' quotes being very competitive.

A spokesperson for Ampere, Renault's electric vehicle subsidiary, responded, "We do not rule out the possibility of cooperation with Chinese partners," while adding that the company has not yet made a final decision, stating, "The relevant process is still ongoing."

The spokesperson also emphasized that even if the stator is supplied by Chinese companies, the goal of "French manufacturing" remains unchanged.

According to the information, the E7A motor will still be produced at Renault's factory in Clairefontaine, located in northwestern France. The carbon silicon module of another core component of the electric vehicle, the inverter, will be provided by the Franco-Italian joint venture STMicroelectronics.

"We are also studying the possibility of locating the stator production in France," she added.

According to Reuters, as a relatively small-scale traditional automaker among mainstream ones, in recent years, Renault has alleviated the cost pressure of electric vehicle development through multiple collaborations, and has already turned to technologically advanced Chinese suppliers. The development of its new electric model Twingo was completed in just two years with the participation of Chinese engineering teams.

By 2028, the next generation of compact electric vehicles from Renault will be equipped with new rare-earth-free motors. These motors will be the core content of the strategic plan to be announced by the newly appointed CEO, François Provost, in March next year.

On October 21st local time, in Ljubljana, Slovenia, French President Macron and Slovenian Prime Minister Robert Golob attended the European automotive competitiveness event, where Jean-Dominique Senard, Chairman of the Board of Directors of Renault Group, introduced the Renault electric Twingo model to be produced in Slovenia. Visual China

Reuters linked the global automotive industry's focus on developing rare-earth-free motors with China's dominant position in the rare earth industry and its export control policies. The report mentioned that China controls 70% of the global rare earth mining and 85% of the refining capacity. After China legally strengthened export controls in accordance with international practices, the automobile industry rushed to seek alternative supply channels, betting on rare-earth-free permanent magnet motors.

After the Sino-US Kuala Lumpur trade and economic consultation, the EU particularly worried about not being included in the scope of China's "temporary suspension of rare earth export controls." Last Wednesday (5th), EU Commissioner for Trade and Economic Security, Shevchenko, revealed that the EU has established a "special communication channel" with China to ensure the supply of rare earth materials critical to EU industries.

When responding to media questions, he stated that he had communicated directly with Chinese officials multiple times, emphasizing that if the management of rare earth export procedures is not properly handled, it would have a "very negative impact" on EU production and manufacturing.

Shevchenko said that after repeated negotiations, China agreed to prioritize processing applications from European companies. Through this "special communication channel," both sides' officials are working together to review and expedite rare earth material export licenses.

He also revealed that since China implemented export controls, European companies have submitted approximately 2,000 applications, of which just over half have been approved. The EU will continue to urge China to speed up processing the remaining applications, while striving to achieve diversification of rare earth supplies through the development of local resources in Europe, including rare earth and magnet production in Estonia.

According to data from the International Energy Agency, in 2023, China accounted for over 60% of global rare earth mineral output, but its control over the processing stage accounted for 92% of global production, almost having a monopolistic control over the global rare earth processing sector. Some European media previously pointed out that for the EU, reducing dependence on China is a difficult task because China has already established a "de facto monopoly" in the rare earth sector.

Currently, the EU is formulating emergency plans, including increasing local mineral production, diversifying supplier networks, and reusing certain materials, while planning to establish a joint procurement and strategic reserve center. However, European officials admitted that there is no quick solution.

According to the website of the Ministry of Commerce, from October 31st to November 1st, Jiang Qianliang, Director of the Bureau of Safety and Control of the Ministry of Commerce, held a "upgraded" Sino-EU export control dialogue meeting with Deputy Director General of the Directorate-General for Trade of the European Commission, Redonnet, in Brussels. Both sides had in-depth and constructive communications on mutual concerns in the field of export control. Both sides agreed to maintain communication and exchange, promoting the stability and smoothness of the Sino-EU industrial and supply chains.

At a press conference held on the 4th local time, the European Commission stated that EU officials discussed general licenses and sought China's relaxation of rare earth exports to the EU.

Regarding the rare earth issue, China has clearly stated its position. On October 21st, Wang Wentao, Minister of Commerce, held a video conference with Shevchenko upon request, stating that regarding the issue of rare earth export controls, China's recent measures are a normal practice of improving its export control system in accordance with laws and regulations, reflecting China's responsibility as a major country to maintain world peace and stability. China is committed to maintaining the safety and stability of the global industrial and supply chains and has always provided approval convenience for European companies.

This article is an exclusive article of Observer News, and it is not allowed to be reprinted without permission.

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