Nissan's "90% Rare Earth Cut" ? Is It Real or Marketing?

Highlights

• Nissan claims a 90% rare earth reduction in the new Leaf motor, but evidence suggests this refers specifically to heavy rare earths (dysprosium, terbium) rather than total rare earth elimination.
• Independent verification indicates Nissan’s innovation reduces heavy rare earths to ~1% of magnet weight, while the motors still rely heavily on light rare earths like neodymium and praseodymium.
• The claim is plausible but imprecise—missing key data (e.g., grams per motor) and third-party validation—so rare earth demand for EVs appears to be evolving, not disappearing.

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A report from Nikkei Asia claims Nissan Motor Co. reduced rare earth use in the new Leaf by 90%. That headline is attention-grabbing—but investors should ask a more precise question: 90% of what, exactly?

What’s Being Claimed

According to Nikkei Asia (opens in a new tab) Nissan’s latest Leaf motor uses 90% less rare earths, enabled by new processing technology and motor design. At face value, this suggests a breakthrough with major implications for EV supply chains.

What the Evidence Actually Shows

Independent verification tells a more nuanced story:

• Nissan has long reduced heavy rare earths (HREEs) like dysprosium:
  • ~40% reduction in early Leaf motors (Nissan disclosures)
  • ~85% reduction in 2020 Note e-POWER models (Nissan sustainability reports)
• Nissan’s own powertrain roadmap indicates motors that reduce heavy rare earth content to ~1% or less of magnet weight (company technical briefings and industry coverage)
• Industry context from multiple Rare Earth Exchanges:
• EV motors still rely heavily on NdPr (light rare earths)
• HREE reduction—not elimination—is the primary innovation trend

The Critical Distinction Investors Must Understand

“90% less rare earths” ≠ total rare earth elimination.

It likely means:

• ~90% reduction in heavy rare earths (Dy, Tb)
• Continued reliance on neodymium and praseodymium, which dominate magnet composition

This aligns with known motor engineering pathways—but contradicts the broader headline interpretation.

REEx Investor Verdict

The claim is plausible but imprecise.

• Supported: Major reduction in heavy rare earth dependency
• Not proven: 90% reduction in total rare earth use
• Missing: grams per motor, supplier data, third-party validation

Bottom Line

Nissan’s innovation is real—but the framing is likely marketing shorthand, not full disclosure. For investors, the key takeaway is unchanged: rare earth demand is evolving—not disappearing.

Sources: Nikkei Asia (Ochiai & Kaku, April 2026); Nissan sustainability reports and technical briefings; Reuters; IDTechEx