Induction motors don't require the rare earths unlike permanent magnet motors. GM has both designs in the same motor family.

 

GM just announced, via their SEC filing, a $1.6Bn writedown due to excess EV manufacturing capacity given the overall weakening demand for Electric Vehicles.

So looks like it could also be a double edged sword as they reduce production.

 

Yeah Ford had an even bigger write down. The problem isn't EV's I think but just a rotten economy, we're in a real economy recession but a technical 'not yet' recession due to AI and top 10% spending.

 

But AI is going to save us

 

GM’s Rare-Earth Gamble Pays Off as China Tightens Magnet Exports



If you've been following this, rare earths aren't rare but refining them is a dirty process. One that the West was foolishly more than happy to outsource to China, which subsidizes production so it's cheap, and to hide the environmental cost. Except we're dependent on them especially in A&D. China has the corner on the market so now is weaponizing it.

There's several ways we can produce more in the West but a major problem is that China fixing the market at a low price, obviously to make it uneconomic for anybody else to produce. So you have to have guaranteed price floors for Western producers, something Australia is how working on with the US.

Anyhow GM had the foresight to (it sounds like) effectively do this years ago via purchase agreements. Their approach to the EV rollout should be a case study in business school honestly.

Well...
We all know there's a Big Difference between 'Owning The Means Of Production' and, "Purchase Agreeements".

I'm afraid if this USA/China 'Rare Earths Battle' gets out of hand, GM might find itself battling with our own government to keep those purchase agreements.
A very quick bit of homework shows the ways Uncle Sam Could Cut In...

 

I'm afraid if this USA/China 'Rare Earths Battle' gets out of hand, GM might find itself battling with our own government to keep those purchase agreements.

I very much doubt that. Purchase agreements often contain fail to deliver clauses with severe penalties, and this administration certainly won't get in the way of private investment. Otherwise the Pentagon is on a near $1B spending spree to build up a stockpile, and having worked with them in my day job it's done via purchase agreements just like anybody else.