[SMM Analysis] Analysis of NEV Motor Raw Material Cost Structure and Supply Chain Collaboration Mechanism

I. Core Raw Material Cost Proportions: Magnetic Materials Dominate, Metal Materials Collaborate

The cost structure of new energy vehicle (NEV) motors is highly concentrated in four core materials: NdFeB permanent magnets, electrical steel sheets, enamelled wire (copper/aluminum), and aluminum alloy structural components. According to industry data, the cost distribution for permanent magnet synchronous motors (accounting for over 80% of NEV models) is as follows:

NdFeB Permanent Magnets: Accounting for 30%-45% of raw material costs, it is the largest cost item. High-performance NdFeB (such as intrinsic coercivity Hcj > 20kOe) is the core source of the rotor's magnetic field, with a usage of 4-6kg per motor. The cost is significantly affected by fluctuations in Pr-Nd prices. A significant increase in Pr-Nd prices impacts the cost structure of motor manufacturers.

Electrical Steel Sheets: Accounting for 15%-20% of raw material costs. Cold-rolled non-oriented electrical steel (grade 50W350) forms the stator and rotor cores, with a usage of 80-120kg per unit. Its cost is influenced by iron ore and alloy element prices. High-grade electrical steel (low iron loss, high magnetic permeability) can be 20% more expensive than regular grades.

Enamelled Wire: Accounting for 15%-25% of raw material costs. Copper enamelled wire (conductivity 5.96×10⁷ S/m) is the mainstream choice for stator windings, with a usage of 25-40kg per unit. Fluctuations in copper prices directly impact the cost, similarly affecting NEV motors.

Aluminum Alloy: Accounting for 10%-15% of raw material costs. Used for motor housings, end caps, and other structural components, the demand for lightweight solutions drives its increased adoption. New rare earth aluminum alloys (with lanthanum added) are 30% cheaper than traditional cast aluminum, with a tensile strength of 265MPa, and have been applied in some car models.

II. Trading Rules: OEMs Lead Design, Customized Magnetic Materials Drive Supply Chain

The supply chain collaboration for NEV motors follows a "OEM → Motor Manufacturer → Magnetic Material Supplier" three-tier customized model, with the core logic being the differentiated allocation of technical thresholds and cost weights:

OEMs Define Technical Specifications: Downstream automakers (such as BYD, Tesla) set motor performance parameters (such as peak power 150kW, maximum speed 16,000rpm) based on the positioning of the car model (driving range, power, NVH), and hand over the design plan to the motor manufacturer.

Motor Manufacturers Break Down Material Requirements:

High-Threshold Materials Outsourced: NdFeB magnets, due to involving rare earth formulas (such as dysprosium and terbium content) and coating processes (anti-corrosion) and other patented technologies, are custom produced by the magnetic material supplier based on the rotor drawings provided by the motor manufacturer.

​​Self-storage of low-threshold materials​​: Standardized materials such as enamelled wire and aluminum alloy are usually kept in safety stock (approximately 2-4 weeks of usage) by motor factories, but large-volume purchases are still executed based on orders.

​​Specialized production by magnetic material factories​​: Magnetic material factories (such as Ningbo Yunsheng and Innuovo) adjust the rare earth ratio and optimize the orientation magnetic field according to the drawings of motor factories, providing single customized production lines for single car models. The delivery cycle for magnets is as long as 60-90 days (involving sintering and magnetization), requiring strict synchronization with the motor assembly line.

III. Cost negotiation focus: Irreplaceability of magnetic materials and flexible substitution of basic materials​​

The path to optimizing raw material costs is polarized due to technological barriers:

​​Rigid constraints of NdFeB​​: There is currently no large-scale alternative to rare earth permanent magnets. Non-magnetic motors (such as induction motors) are only used in some entry-level car models due to their low efficiency (<94%) and large size. The core reason for the high proportion of magnetic material costs lies in the strong coupling of performance and cost: High coercivity NdFeB (resistant to 150℃) is priced 25% higher than ordinary models but can increase motor power density by 20%. OEMs are forced to balance performance and cost.

​​Flexible substitution of copper/aluminum/steel​​:

​​Copper to aluminum wire​​: Aluminum enamelled wire is 40% cheaper but requires a 30% increase in cross-sectional area to compensate for resistance losses, resulting in a decrease in slot fill factor. It is only feasible in micro-motors (<50kW).

​​Electrical steel to amorphous material​​: Amorphous ribbon reduces iron loss by 70% (such as Yunlu's products), but its cost is 1.5 times that of electrical steel and processing is difficult. It is only used in high-end car models (GAC Hyptec's driving range +150km), with a penetration rate of less than 5%.

​​Lightweighting of structural components​​: Rare earth aluminum alloy (with 0.15% lanthanum added) is 30% cheaper than cast aluminum and has gradually replaced traditional copper core components.

IV. Future trends: Material innovation reshapes cost ratios​​

Technological evolution is reshaping the cost structure:

1. Revolution in reducing magnetic material usage​​:

​​Grain boundary diffusion technology​​: Concentrating dysprosium and terbium on the magnet surface (penetration layer <10μm), gradually reducing rare earth usage.

​​Establishment of recycling systems​​: By 2030, the recycling rate of NdFeB will continue to increase, with the MIIT promoting standardized dismantling of retired motors.

2. Popularization of hairpin motors​​: Special-shaped cross-sectional copper wires continuously improve slot fill factors, driving cost reductions.

3. Application of superconducting materials​​: Some OEMs are utilizing superconducting materials to reduce magnetic material usage.