France’s Renault has ended its joint project with Valeo to develop a new rare-earth-free electric vehicle motor and is now seeking a lower-cost Chinese supplier, Reuters reported, citing two sources familiar with the matter.
“The E7A engine project is no longer being done with Valeo,” one of the sources told Reuters, adding that “it will be done entirely in-house across the entire value chain, except for the stator which could be bought from a Chinese supplier.” The decision, according to the sources, was driven primarily by the need to cut costs, as Chinese suppliers offer significantly more competitive prices.
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A spokesperson for Ampere, Renault’s EV subsidiary, confirmed that a partnership with a Chinese company remains on the table. “A Chinese partner is a possibility,” the spokeswoman said. “The process is still ongoing.” Valeo declined to comment.
Despite the possible use of Chinese components, Renault emphasized that the motor would still be produced in France. “We are studying the possibility of locating (the stator) in France,” the Ampere spokeswoman added.
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The E7A motor, expected to deliver 200 kW of power—25% more than the current generation—and feature an 800-volt system for shorter charging times, will drive Renault’s next generation of compact EVs by 2028. The technology is set to be a cornerstone of Renault’s upcoming strategic plan, which CEO François Provost is due to present in March.