Toyota Industries, KION and Crown Electrify Forklifts as China Dominates Rare Earth Magnet Supply

Highlights

• China produces approximately 94% of rare earth permanent magnets used in electric motors, creating strategic risk for Western forklift manufacturers.
• Not all electric forklifts require rare earth magnets—induction and synchronous-reluctance motors offer magnet-free alternatives, making motor architecture a critical investment variable.
• Toyota, KION, Jungheinrich, Crown and Logisnext hold roughly 69% combined market share, but their rare earth exposure varies significantly by model and motor design.
• A verified European supply chain links Kienle + Spiess rotor components to JULI Motorenwerk motors used in Jungheinrich and KION industrial trucks, illustrating multi-tier sourcing complexity.
• Export controls could incentivize forklift makers to import complete Chinese motor assemblies rather than magnets, risking gradual migration of industrial manufacturing value to China.