Porsche and Honda Pursue Rare-Earth-Free Battery Tech
Porsche targets 2028 for closed-loop battery production while Honda invests in rare-earth-free magnet technology to secure supply chains.
Key points
- Porsche plans to start producing new battery cells from recycled materials in 2028 using a water-based process.
- Honda invested in Niron Magnetics to develop iron nitride permanent magnets that eliminate the need for rare earths.
- Both companies aim to reduce dependence on China-dominated rare-earth supply chains to stabilize costs and ensure production continuity.
Porsche and Honda are executing distinct strategies to decouple their electrification roadmaps from volatile rare-earth markets. Both automakers aim to mitigate supply chain risks exacerbated by China's recent export restrictions, which have tightened global access to critical battery materials.
As reported by F&I and Showroom, these initiatives represent a shift toward material circularity and alternative chemistry. The goal is to stabilize production costs and ensure long-term component availability for electric vehicle platforms without relying on constrained global sources.
Porsche Targets Closed-Loop Cell Production
Porsche is advancing a closed-loop manufacturing process that recycles lithium, nickel, cobalt, and manganese from spent batteries. By using a water-based recycling method at domestic plants, the company intends to produce new battery cells entirely from reused substances.
The German manufacturer is currently testing pilot program outputs in real-world conditions. Executive Board member Joachim Scharnagl stated that this approach optimizes resource efficiency while advancing circular economy principles. Porsche aims to commence new battery cell production using this method in 2028.
Honda Backs Rare-Earth-Free Magnets
Honda has invested in Niron Magnetics, a U.S.-based firm developing iron nitride permanent magnets that require no rare earths. This technology addresses the dependency of electric propulsion motors on scarce metals, offering a path to cost stability and supply chain resilience.
Mahito Shikama, a Honda Director and Executive Officer, noted that most current electric motors rely on rare-earth permanent magnets. Honda’s investment through Xcelerator Ventures supports the commercialization of this alternative, which could be applied across automotive and other industrial sectors to reduce reliance on constrained global supply chains.
Supply Chain Resilience Drives Innovation
These moves reflect a broader industry response to geopolitical trade tensions that have disrupted raw material flows. By developing internal recycling capabilities and alternative magnet chemistries, automakers seek to insulate their production lines from external shocks and maintain competitive pricing for electrified models.
