PJ, I see a lot of discussion on the interwebs that Tesla's new Model 3 will have a Permanent Magnet AC Motor (PMAC) instead of their hallmark AC induction motor.
AFAIK this change has not been officially announced by Tesla, but rumours have been swirling since August because of details on an EPA filing by Tesla that disclose the new motor type.
One reason for the change seems to be that a PMAC motor system will increase vehicle range in around town stop/start driving because it improves energy recovery from the regenerative braking system.
PMAC motors are already widely used in other vehicles such as the Chevy Bolt (motor and battery system made for GM by LG). Adoption of PMAC by Tesla will contribute to rising overall demand for rare earths, but is not a revolution in itself.
Peak Resources caught wind of the unofficial information about Tesla's motor change and have been making hay with it ever since:
But there is some BS here because Tesla itself is not going to directly purchase rare earth minerals in order to make magnets from scratch. My understanding is that they will instead purchase fully-finished magnets from a Chinese magnet supplier and assemble these as a component into motors, possibly at the Tesla GigaFactory.
Tesla's magnet supplier appears to be Beijing Zhong Ke San Huan Hi-Tech Company (ZKSH). For Peak to win some of Tesla's business it will have to secure an offtake agreement with the Chinese magnet maker.
The same point has to be made for lithium and cobalt explorers who are touting proximity of their mine/brine to Tesla or other battery GigaFactory as some kind of competitive advantage. The reality is that raw materials have to first go to a refiner/processor before they become a useful ingredient/component of a battery (or a motor). Location advantage is only real if your mine/brine is close to the first point of processing in what is usually a long supply chain before the finished component can be delivered to an end-use customer like Tesla.
