Nowadays, sustainability is a huge topic. One part of the discussion is the desired increase of energy efficiency. Therefore, electric drives tend to become updated. Due to the higher efficiency induction machines (IM) are being replaced by permanent magnet synchronous machines (PMSM). Often these permanent magnet synchronous machines contain environmental critical rare earth magnets. This leads to the question, whether PMSM are indeed more environmental friendly than IM, when the whole product life cycle is considered rather than a single aspect of it. The aim of this thesis is to answer this question. To get an answer a comparative life cycle analysis (LCA) is conducted. Two different 750W motors for a palette conveyor application are compared. From the LCA results two major conclusions can be drawn. First, the main driver for the environmental impacts is the energy consumption during the use phase. Since the PMSM has lower energy demand than the IM, the IM has higher impact values in all impact categories. Second, even if the use phase is neglected, the IM has still higher impact values due to higher raw material usage. Only in one impact category, freshwater eutrophication, the PMSM has a slightly higher impact value caused by rare earth magnet production.