Major Developments in Rare Earths and Electric Motors in 2025

In 2025, significant advancements emerged in the fields of rare earth elements, magnets, and electric motors, with a particular focus on the resurgent Mountain Pass mine in California. This facility, once a key player in the global supply of rare earth oxides, ramped up production of neodymium and praseodymium, marking a critical moment for the United States as it seeks to reduce reliance on Chinese sources.

The Mountain Pass mine, located in California’s Mojave Desert, had produced up to 70 percent of the world’s rare earths from 1965 until the mid-1980s. However, environmental concerns and operational challenges led to a decline in the 1990s. By 2025, the mine had been revitalized, with the Trump administration investing heavily to secure a domestic supply chain for these essential materials, critical for various technological applications including motors, semiconductors, and military systems.

The geopolitical implications of this development cannot be overstated. Currently, China dominates the market for rare earth elements, controlling between 85 and 99 percent of global supplies, which puts the United States and its allies in a precarious position. As production at the Mountain Pass mine increased, the Trump administration aimed to establish alternative supply chains by exploring partnerships with countries like Australia and even making overtures to Ukraine and Greenland, despite their mining potential being questioned by experts.

Strategic Moves and Investments

In a notable investment move, the U.S. Department of Defense, now referred to as the Department of War, committed $400 million to acquire a 15 percent stake in MP Materials, the company managing the Mountain Pass mine. This deal included a price guarantee of US $110 per kilogram for certain rare earth oxides, significantly higher than Chinese market prices.

The year also saw a surge in American companies announcing plans for manufacturing rare-earth magnets domestically. MP Materials initiated the production of neodymium-iron-boron magnets at a facility in Texas, with plans to scale up to 2,000 to 3,000 tonnes annually. A significant contract with Apple, valued at $500 million, was established to supply these magnets, which are integral to the functionality of Apple’s devices.

Research and development in electric propulsion systems also gained momentum. At Victoria University in Wellington, New Zealand, researchers launched a technology demonstration aimed at using high-temperature superconducting materials to enhance propulsion systems for space travel. This innovative approach could redefine efficiency in future space missions.

Innovations in Electric Motors

The electric aviation sector witnessed exciting advancements. Startups like Hinetics, which originated from the University of Illinois Urbana-Champaign, developed high-temperature superconducting motors designed to meet the specific power requirements of electric aircraft. Their prototypes aim for a specific power output of 40 kW/kg, a substantial improvement over existing technologies.

Airbus, too, made headlines with its ambitious project to create a zero-emission passenger aircraft powered by hydrogen fuel cells. This initiative, known as ZEROe, highlights the company’s commitment to sustainable aviation, although experts believe widespread adoption of hydrogen-powered planes will not occur before the 2040s.

Challenges remain for the electric vehicle industry, particularly with in-wheel hub motors, which could revolutionize vehicle dynamics. Donut Lab showcased its latest motor design, achieving a power rating of 650 kW while addressing the unsprung weight problem commonly associated with this technology.

Throughout 2025, Greenland emerged as a potential target for resource acquisition, with President Trump expressing interest in the region’s rare earth deposits. However, experts cautioned that significant obstacles would need to be overcome to exploit these resources effectively.

As 2025 drew to a close, the landscape of rare earth elements and electric motors became increasingly intertwined with global politics, technological advancements, and strategic investments, shaping the future of industries reliant on these critical materials.