EVs and wind are a very important part of the REE market but...

EVs and wind are a very important part of the REE market but they are not even close to the majority, The bulk of PM motors is automotive industry used by ICE vehicles. These are from some fairly new applications Like driving power steering, air conditioning compressors, and water pumps. to much more traditional applications like fans, windows and seats. about 95% of vehicles are still ice, multiplying the use per vehicle by 20 that makes these a dominate player. For cars assembled in the northern American hemisphere most of these motors are built into assemblies in Mexico.
Compared to traction motors these motors are simple and parts can be sourced anywhere. Margins is small and labor is low, So purchase price of materiel is very important. This means producers will change quickly for even a few cents savings. This is why Lynas has been and will be impacted by any price changes in the REE pool. Japan has to respond to Keep these simpler markets therefore Lynas has to respond to them.

All that this applies to hand tools, home appliances both large and small. A motor is a major cost in window, whole house and commercial real-estate HVAC units. They all tend to be standardize for mounting, power input and HP. Builders of all these things will change rapidly to save money.

The EV traction motor is a complicated precision design. No changes will be made in the supply chain without careful investigation, this is time consuming. This limits changing sources. Today and for next few years this is just not what will have the greatest impact on REE prices. Someday it will but as time elapses the design of these motors will become standardized. This will mean multiple sources for critical parts.


To not understand this and focus on EVs and wind means you will not understand market moves like current dop in REE prices.