Despite their growing popularity, electric vehicles remain considerably more expensive than their conventionally-powered counterparts. A number of factors contribute to the price of an EV, but the cost of rare earth metals is one increasingly major variable. Prices for these metals are currently unpredictable and volatile; this leads to a great deal of uncertainty for OEMs who must either raise the sticker price or absorb the cost. Price volatility has its own set of challenges, but the constant thorn in the side for EV production is the high price of raw materials needed in the EV drivetrain.
The market for rare earth metals is volatile. China currently produces nearly 95% of the world's supply and the metals are providing attractive investments for commodity traders. General Electric recently observed that if we applied the same rate of inflation experienced by europium oxide to coffee, a cup which cost US$2 a year ago would now cost US$24.55.
Price volatility has its own set of challenges, but the constant thorn in the side for EV production is the high price of raw materials needed in the EV drivetrain.
Addressing the use of these materials in automotive powertrains will be critical in ensuring that EVs can become a more attractive proposition to both the OEM and the consumer. We can do little about the volatility of raw material prices, but with intelligent, innovative designs we can limit our exposure. As with most things in the automotive industry, this comes down to efficiency. The more efficient the driveline, the smaller we can make the motors and batteries, thus reducing cost and directly reducing the impact of volatile material prices.
It requires more innovative thinking. Research has shown that two 30kW electric motors are more efficient than a single 60kW motor: running multiple motors more efficiently allows us to reduce their overall size and the materials needed while maintaining the same output. There are other benefits to running a multi-speed transmission, including increased range and better performance, but it is the ability to reduce cost and minimise the impact of raw material price volatility that will ensure the technology becomes essential.
It is the ability to reduce cost and minimise the impact of raw material price volatility that will ensure the technology becomes essential.
A huge amount of resource has gone into battery research, but future EVs may rely almost as much on multi-speed transmissions to achieve the ranges and efficiencies that customers expect. Oerlikon Graziano, one of the leaders in this emerging technology field, has developed an e-DCT transmission that demonstrates what is possible today.
The technology works on a similar principle to a dual-clutch transmission. The clutches are replaced by two electric motors, permanently fixed to the transmission input shafts. The result is the same as dual-clutch: seamless shifts and increased efficiency. It's possible to increase range or to downsize the powertrain and battery pack by around 15%.
EVs aim to reduce our reliance on fossil fuels. We also need innovation to reduce the amount of rare earth metals we are using in their electric motors.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Paolo Mantelli is Head of Automotive Transmissions, Vice President, at Oerlikon Graziano. For more information, visit www.oerlikon.com/graziano and www.vocis.co.uk
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