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It has been proposed that the EU Ecodesign Directive can promote resource efficiency through relevant ecodesign requirements. This paper examines the potential for rare earth element (REE) resource efficiency improvements in the event the current regulation for electric motors under the Ecodesign Directive is to be extended to comprise REE-based permanent magnetmotors. The research is based on literature studies, questionnaires and semistructured interviews with representatives from industry and academia. It is found that standards addressing the design and use phase could yield highest resource efficiency improvements of REE in permanent magnet motors. Highly ranked are stricter EU energy efficiency ratings and design for dismantling if and when recycling of REE was to be commercialized.