Hybrid and electric vehicle technology has seen rapid development in recent years. The motor and the generator are at the heart of the vehicle drive and energy system and often utilize expensive rare-earth permanent magnet (PM) material. This paper reviews and addresses the research work that has been carried out to reduce the amount of rare-earth material that is used while maintaining the high efficiency and performance that rare-earth PM machines offer. These new machines can use either less rare-earth PM material, weaker ferrite magnets, or no magnets; and they need to meet the high performance that the more usual interior PM synchronous motor with sintered neodymium-iron-boron magnets provides. These machines can take the form of PM-assisted synchronous reluctance machines, induction machines, switched reluctance machines, wound rotor synchronous machines (claw pole or biaxially excited), doublesaliency machines with ac or dc stator current control, or brushless dc multiple-phase reluctance machines.