【Text by Observers Network, Pan Yuchen; Editor by Gao Xin】According to Reuters on November 10, two sources said that Renault of France has ended the E7A project, a joint development of a new rare-earth-free motor with Valeo, and is now seeking to cooperate with Chinese parts suppliers who offer lower costs.

Both sources said that Renault's move was due to the need to cut costs, and Chinese suppliers offered very competitive prices.

Regarding this rumor, a spokesperson for Renault's electric vehicle subsidiary Ampere said "it is possible to cooperate with China," but added that no decision has been made yet. Valeo declined to comment.

Previously, in late 2023, Renault had stated that it was working with Valeo to develop a new rare-earth-free motor called E7A, which is more powerful and compact, and called it "an innovation made in France."

Renault, Reuters

The E7A motor has a power of 200 kW, 25% higher than the current generation motors such as Scenic, and can significantly reduce charging time due to its 800V system (twice that of Renault's current electric vehicles). Valeo uses a new copper wire technology for the stator, the fixed part of the motor.

One of the sources said that after ending the cooperation with Valeo, Renault decided to purchase the stator from Chinese suppliers, and STMicroelectronics will provide the silicon carbide modules for the inverter, while other components will be completed by Renault's internal supply chain. This motor will be produced at Renault's plant in Cléon, France.

On the other hand, Valeo is still working with German supplier Mahle to develop its own rare-earth-free iBEE motor, which will deliver 350 kW of power and is also expected to launch in 2028.

Currently, China controls 70% of global rare earth mining and 85% of rare earth refining. With China implementing export controls on rare earth-related technologies, some multinational automakers are turning their attention to rare-earth-free projects to ensure stable supply. In addition to Renault and Valeo, automotive manufacturers and parts suppliers including General Motors, ZF, and BorgWarner are collaborating to develop rare-earth-free motors.

According to Renault's strategic plan disclosed in March this year, the new rare-earth-free engine will be equipped on Renault's next-generation compact electric vehicles by 2028. In addition to the motor, the small electric vehicle Twingo, developed by Renault's China R&D center, which costs less than 20,000 euros, was originally jointly developed by Volkswagen and Renault, but eventually failed due to inability to control costs. However, after being taken over by Renault's China R&D center, the development time was shortened to less than 2 years.

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