Elon Musk says Tesla has a rare-earth-free motor. Should China be worried?

As Tesla CEO Elon Musk touted the motor of his company’s Cybercab – which, he claims, contains no rare earth elements – debate has emerged over whether the technology could mark a meaningful shift in electric vehicle (EV) supply chains, or undercut one of China’s trump cards in its protracted trade conflict with the US.

While the move has been viewed as an effort to reduce the EV industry’s reliance on rare earths – an essential component in the permanent magnets that power electric motors –...