With ac motors electromagnets can be used in the rotor. there is even a super clever way to do it where the electromagnet in the rotor is driven wirelessly via induction. there are some downsides but having no physical sliding electrical connection to the rotor is a huge upside. The ac can be dynamically formed from DC via high speed switching(transistors, in industry often called a VFD).
Due to the upsides of ac induction motors I sort of assumed this was already what was found in cars. I am a bit surprised to find out there were rare earth magnets in the first place.
The problem is that it makes the rotor far less mechanically robust and also heavier. That's why these motors are less powerful.