Asia’s EVolution: As EV makers seek to cut reliance on rare earths, made-in-India solutions gain traction

The Push Against Rare Earth Dependency

Electric vehicle manufacturers across Asia and beyond are racing to break free from their heavy reliance on rare earth elements, those elusive minerals essential for high-performance motors but plagued by supply uncertainties. China controls nearly 90 percent of the global supply, creating vulnerabilities through price volatility and export restrictions that have disrupted industries time and again. Major players like Renault, BMW, and Nissan have pioneered rare-earth-free designs in models dating back over a decade, with Nissan's Ariya SUV showcasing this technology since 2020. These alternatives use abundant materials such as ferrite magnets, electrical steel, and copper coils, slashing costs since rare earths can account for up to 40 percent of a motor's price tag. While they trade some efficiency—typically 84 to 92 percent compared to 90 to 95 percent for rare earth motors—the advancements in power electronics and control systems are closing the gap effectively.

India stands at the forefront of this shift, leveraging its engineering talent and resource realities to develop practical solutions. Startups in Chennai and Bengaluru are already deploying these motors in real-world applications, from electrified farm tractors to construction loaders. This homegrown approach not only mitigates risks but also aligns with India's push for self-reliance in clean energy technologies.

Homegrown Innovations Driving Change

In the bustling tech hubs of southern India, companies like Viridian Ingni Propulsion and Chara Technologies are crafting motors that sidestep rare earths entirely. Ferrite-based designs, long used in three-wheelers across the country, prove their mettle in cost-sensitive markets where durability trumps peak performance. Bullwork Mobility, based in Bengaluru, integrated Chara's motors into its EV tractors and sprayers as early as 2025, prioritizing long-term operating costs over raw power. Simple Energy has followed suit, validating these technologies amid global supply squeezes.

“Ferrite magnets are much cheaper and far more abundant compared to rare earth magnets. With better power electronics and control algorithms today, those problems can be solved,” said Sriram Gopal, founder and CEO of Viridian Ingni Propulsion.

These innovations resonate globally as automakers weigh supply security against performance trade-offs. Experts note that while rare-earth-free options may require bulkier designs, modern software optimizations make them viable for mass adoption. India's ecosystem, already experimenting with synchronous reluctance motors akin to Tesla's magnet-less approach, positions it to export not just vehicles but scalable tech to a world hungry for diversification. The focus on recyclable materials further boosts sustainability credentials, appealing to environmentally conscious markets.

Government Backing and Future Roadmap

The Indian government is doubling down with strategic investments to support both rare-earth-free paths and domestic supply chains. The 2026-27 Union Budget unveiled dedicated rare earth corridors in Andhra Pradesh, Kerala, Odisha, and Tamil Nadu, fostering mining, processing, and manufacturing hubs. A massive scheme approved in late 2025 allocates billions of rupees to build 6,000 metric tons of annual capacity for sintered rare earth permanent magnets, selecting up to five partners via global bidding. This dual strategy—encouraging magnet redesigns while scaling local production—addresses immediate needs and long-term demands, with e-motor needs projected to grow at 36 percent annually.

Officials are nudging automakers toward alternatives like light rare earth magnets or fully magnet-free systems, evident in the widespread use of ferrite in electric three-wheelers. Joint ventures with magnet specialists are on the horizon, blending expertise for broader adoption. As India's passenger EV production inches up, hitting 4.1 percent in 2025, these moves promise resilient growth, potentially meeting soaring demands of 8,000 to 10,000 tonnes of magnets by decade's end without overdependence on imports.

This balanced approach underscores India's ambition to lead in resource-secure EV tech. By nurturing indigenous capabilities, the nation not only safeguards its automotive sector but also offers a blueprint for global players navigating the same challenges. The convergence of innovation, policy, and market forces signals a transformative phase for Asia's electric mobility landscape.

In summary, India's rare-earth-free motor solutions are addressing critical supply risks, bolstered by government initiatives and startup ingenuity, paving the way for affordable, sustainable EVs amid Asia's green revolution.