Currently, the vast majority of electric vehicles, including Tesla’s popular Model 3 and Model Y, rely on permanent magnet motors that depend heavily on rare earth materials such as neodymium and dysprosium. These materials, controlled predominantly by China, contribute to significant production risks and price volatility, with costs for neodymium oxide skyrocketing from $45,000 to over $90,000 per metric ton between 2020 and 2023. This dependency not only threatens the stability of the EV supply chain but also raises serious environmental concerns, as rare earth mining generates hazardous waste and pollution.