Rare Earth Exchanges (REEx) – News/Insights

How Rare Earth Elements Power Hybrid Car Batteries and Transform Transportation

Hybrid car batteries, paired with compact rare‑earth‑based electric motors, have reshaped vehicle efficiency by enabling high‑power assist, regenerative braking, and smoother launches. Neodymium‑iron‑boron magnets deliver the torque density needed for these systems, while dysprosium and terbium protect performance at elevated temperatures. The rapid growth of hybrid sales—over 14 million units in 2023—has amplified demand for rare‑earth elements, exposing supply chain bottlenecks concentrated in China’s processing facilities. Automakers now face pressure to secure materials, recycle end‑of‑life vehicles, and reduce heavy‑rare‑earth usage.