Magnet recycling and rare-earth-free motors offer the UK an opportunity to establish infrastructure, secure feedstock flows, and support innovation in E-motor technologies. Doing so will strengthen national supply chain resilience, reduce dependence on geopolitically sensitive materials, and position the UK as a leader in the emerging circular economy for critical minerals, in the journey toward net zero
Imagine a world where the very materials that power our cars and sustain our future are recycled right here in the UK. That’s the vision laid out in a recent report from the Advanced Propulsion Centre UK (APC) on rare-earth resilience for the UK’s automotive industry. It’s an encouraging glimpse into the future, one where by 2035, the UK could meet a remarkable 25% of its automotive permanent magnet demand through recycling. This potential isn’t just a number on a page – it’s a lifeline that could redefine our relationship with the materials we rely on.
Demand for rare-earth permanent magnets
The accelerating transition to electric mobility and renewable energy is driving unprecedented demand for rare earth permanent magnets, particularly neodymium (NdFeB) magnets used in high-efficiency traction motors. Permanent magnet synchronous motors (PMSMs) are the dominant E-motor used in the electric vehicle (EV) industry due to their superior performance and efficiency. PMSMs will dominate the European traction motor landscape until 2035, with a demand of 13 million motors.¹
As someone working in the automotive industry, I find the emphasis on magnet recycling and the exploration of rare-earth-free motors particularly exciting. After all, the automotive industry, a cornerstone of our economy, is at a crossroads. By strengthening national supply chain resilience, the UK can take significant steps toward reducing its dependence on materials that are often tied up in geopolitically sensitive regions. This isn’t just about making cars; it’s about creating a sustainable future for everyone.
The potential for the UK’s automotive sector
This latest report from APC positions the UK as a trailblazer in the burgeoning circular economy for critical minerals. Picture it: end-of-life EV motors and retired wind turbines standing tall, waiting to be transformed into the very magnets that power our next generation of vehicles. If we truly scale this initiative, those discarded machines could supply a staggering 25% of the UK’s future permanent magnet demand. It’s a potential game-changer that invites us all to reconsider waste and resources, fostering a mindset that sees value in what we once deemed finished.
But it doesn’t stop there. The horizon is filled with innovation opportunities that beckon us to explore rare-earth-free technologies for traction motor applications. The excitement of pioneering new solutions sparks a sense of community among engineers, environmentalists, and business leaders. Together, we can turn challenges into solutions and setbacks into stepping stones toward a greener automotive sector.
Innovation in electric motor technologies
Traction electric motors are the powerhouse of battery electric and hybrid cars. Thanks to major leaps in technology, these motors are now incredibly efficient and deliver impressive performance. E-motors are highly efficient, with more than 95% of the electrical energy converted into mechanical energy. This is primarily due to the use of permanent magnets within the rotors of E-motors, which provides a high power-to-weight ratio (kW/kg) that is critical for automotive applications.
The E-motors used in EVs fall into three major categories:
- Permanent Magnet Synchronous Motors (PMSM);
- Electrically Excited Synchronous Motors (EESM); and
- Induction Motors (IM).
PMSM is the dominant type used in the industry. PMSM uses, as the name suggests, permanent magnets that are made of rare-earth materials like neodymium (Nd) and Praseodymium (Pr). The APC Q4 Automotive demand forecast suggests that PMSM will be dominating the European traction motor demand landscape by 2035, with a demand of almost 13 million motors, nearly 70% of total European demand.
PMSMs are the dominant E-motor used in the EV industry due to their superior performance and efficiency. However, these machines rely on rare-earth materials.
Challenges and their opportunities
Though the rare-earth materials themselves are not rare to extract, they are currently sourced and refined from a single nation, China. The world is currently facing a chokehold on rare-earth materials, with China dominating the industry. More than 90% of the refinement of rare-earth materials is done in China, which has caused supply chain risks and vulnerabilities due to the recent tariffs and geopolitical issues.
Recent Chinese export controls on rare earth oxides, magnet technologies, and dual-use applications have intensified global supply chain vulnerabilities, prompting governments and industry to seek alternative sources and recycling pathways. This includes focused efforts in the EU and the USA to increase rare-earth oxides supply. The critical challenges are around scaling new rare-earth mines, as it can take anywhere between nine and 20 years to operationalise and produce rare-earth oxides at scale.
Since 2025, there has been a strategic, coordinated effort across nations to increase magnet supply and enhance its resilience. This includes efforts to recycle permanent magnets from end-of-life applications in EVs, wind turbines, and consumer electronics, as well as to move towards rare-earth-free motors, which will diversify the technologies used for automotive applications.
There are also innovation opportunities to improve the rare-earth resilience of the industry by investing in non-permanent magnet motors.
The accelerating transition to electric mobility and renewable energy is driving unprecedented demand for rare earth permanent magnets, particularly neodymium (NdFeB) magnets used in high-efficiency electric motors.
The UK also has a strong opportunity to build a competitive domestic recycling ecosystem. Wind turbines alone represent a major resource, with a 3 MW turbine containing up to 600 kg of neodymium magnets. Early initiatives such as Hypromag’s new hydrogen decrepitation facility demonstrate growing industrial capability, but there is potential for more recycling capacity in the UK. The strong opportunity in the UK is well aligned with its recently published critical minerals strategy.
The rare-earth resilience for the UK’s automotive industry report indicates that, if scaled effectively, end-of-life (EoL) EV motors and wind turbines could supply up to 25% of the UK’s future permanent magnet demand by 2035.
As we envision this sustainable future, it is heartening to know that every effort counts. Whether you’re an industry player, a policymaker, or simply someone passionate about our planet, there’s a role for you in driving this transformation. Let’s embrace this journey toward rare-earth resilience—not just for the sake of our automotive industry, but for the generations to come. The road ahead is bright, and together, we can ensure it leads us to a more sustainable and prosperous future.
Read the Rare-earth resilience for the UK’s automotive industry report.
References
About the Advanced Propulsion Centre UK
The Advanced Propulsion Centre UK (APC) collaborates with the UK government, the automotive industry, and academia to facilitate driving research and investment in zero-emission vehicle manufacturing. Established in 2013 and jointly funded by the Department for Business, Innovation, Science and Trade (BIST) and the automotive industry, the APC accelerates the development and industrialisation of technologies that enable the transition to zero-emission vehicle manufacturing and a net-zero automotive supply chain in the UK.
Launched in July 2025 and delivered by BIST in partnership with the APC and Innovate UK, the DRIVE35 (Driving Research & Investment in Vehicle Electrification) programme forms a core part of the UK Government’s Advanced Manufacturing Sector Plan. It underpins the UK’s commitment to a zero-emission future, backed by £4bn in grant funding to 2035 for automotive R&D, scale-up, and transformation.
Focus across three funding pillars – Innovation, Scale-up, and Transformation – is helping to build a globally competitive zero-emission vehicle supply chain and deliver safer, smarter, more sustainable, and affordable mobility.
Innovation
Supporting product and process innovation in strategic and disruptive zero-emission vehicle technologies, including digital tools, Software Defined Vehicles, and AI-driven processes.
Scale-up
Accelerating manufacturing by catalysing investment in advanced technologies for zero-emission vehicles, scaling up sustainable production processes.
Through the Innovation and Scale-up funding pillars of DRIVE35, APC currently supports a portfolio of 128 zero-emission projects involving 184 partners. This portfolio represents over £220m of funding. Collectively, these projects are projected to save more than 42 million tonnes of CO₂e, while strengthening the UK’s long-term automotive capability through collaboration, knowledge sharing and innovation.
Transformation
Driving capital investment to strengthen an internationally competitive EV supply chain, including upgrading existing plants and establishing new facilities to secure future zero-emission vehicle assembly in the UK.
For more information visit apcuk.co.uk or follow ‘Advanced Propulsion Centre UK’ on LinkedIn.
Please note, this article will also appear in the 27th edition of our quarterly publication.
