April 21, 2022—German auto parts manufacturer Schaeffler has entered into a deal with Norwegian rare earth material processor REEtec to bolster its supply of EV parts.

According to a report from Reuters, the five-year agreement will provide Schaeffler with "rare earth oxides" starting in 2024. The value of the deal has not yet been announced.

"We are transforming into an e-motor supplier and are ramping up significantly," Schaeffler COO Andreas Schick said in an interview. "Therefore on the rare earth side we need competent partners, not only going through the standard supply chain through China, we need a local supply chain for Europe."

Schaeffler is leading bearings supplier to automakers such as Volkswagen, General Motors and Honda.