India’s EV Push Latest News
- China—holding over 90% of global rare earth processing—has imposed curbs on exports of key heavy rare earth elements (HREEs) critical for EV motors, threatening global EV supply chains.
- In response, Indian start-ups like Simple Energy and Chara Technologies are developing rare-earth-free or rare-earth-light electric motors.
- This marks a crucial step toward Atmanirbhar Bharat, de-risking supply chains, and strengthening India’s EV ecosystem.
Background - China’s Rare Earth Export Controls
- Export curbs on 7 HREEs (April 2025): Samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium.
- Expansion of export curbs (October 2025): Holmium, erbium, thulium, europium, ytterbium along with related magnets and materials.
- Reason behind curbs: These restrictions emerged amidst a prolonged US–China trade war, creating strategic vulnerabilities for global EV firms.
- Indian imports: India imported 2,270 tonnes of rare earths in 2023–24 (23% rise since 2019–20), with 65% reliance on China.
Indigenous Technological Responses in India
- Simple Energy:
- Key innovation: Developed and homologated a heavy rare-earth-free Permanent Magnet Synchronous Motor (PMSM).
- Eliminated restricted HREEs by:
- Using optimised compound magnets (iron, neodymium, boron, praseodymium, holmium).
- Employing proprietary algorithms for real-time heat, torque and magnetic field management.
- Performance: Almost 99.5% equivalence to conventional PMSM motors.
- Handling Chinese restrictions: Holmium was later added to the restricted list. The company has already developed holmium-free magnets and has buffer stock.
- Market presence: All current EVs use restricted-HREE-free motors. 1,050 units sold in October 2025 (highest ever, recording 215% YoY growth).
- Chara Technologies:
- Key innovations: Developed India’s first EV-grade Magnet-Free Synchronous Reluctance Motor (SynRM), eliminating all magnet requirements.
- Overcame traditional SynRM limitation (low-speed industrial application) by creating
- High-speed, variable-speed EV-compatible motor.
- Comparable torque and power to rare-earth-based PMSM motors, with only a slight increase in size — about 16% larger.
- Deployment: Currently used in agricultural and industrial machinery, with expected entry into the three-wheeler segment.
Strategic Significance for India
- Supply chain security: Reduces dependence on China’s volatile supply of rare earths. Mitigates risks for India’s rapidly growing EV and electronics industries.
- Atmanirbhar Bharat and technological sovereignty: Boosts indigenous R&D, IP creation, and local manufacturing capabilities.
- Geopolitical cushioning: Provides strategic resilience in the face of global critical mineral weaponisation.
- Industry momentum: Ola Electric, TVS Motor and others are also exploring rare-earth-free motors (e.g., ferrite motor approved recently).
Challenges
- Technical and manufacturing challenges: Matching compactness, efficiency, and performance of rare-earth PMSM motors (especially for SynRM). Scaling production while reducing size and weight.
- Cost and supply stability: Availability of alternative magnet compositions must be sustainable and cost-effective. Global rare earth volatility continues to pose uncertainty.
- Market adoption: Original equipment manufacturers’ (OEM) willingness to shift from established PMSM technologies to new indigenous designs.
- Raw material ecosystem: India still lacks a robust domestic rare earth mining, processing, and refining ecosystem.
Way Forward
- Strengthening critical mineral security: Accelerate exploration under the National Mineral Exploration Policy. Build processing/refining capacity through PPPs and global partnerships.
- R&D and innovation support: Incentivise indigenous EV component technology under PLI schemes, R&D grants, and Start-up India.
- Creating a local magnet and material ecosystem: Encourage production of ferrite, non-rare-earth magnets, and alternative alloys.
- Scaling manufacturing: Support commercialisation via demand aggregation, state EV policies, and fleet adoption.
- Strategic global collaboration: Tie-ups with Japan, Australia, US for technology and mineral supply diversification.
Conclusion
- India’s indigenous EV motor innovations represent a significant step towards technological self-reliance and supply chain resilience amid China’s tightening rare earth export controls.
- These innovations are reducing India’s vulnerability, strengthening its EV ecosystem, and aligning with national goals of Atmanirbhar Bharat, energy security, and sustainable mobility.
- Continued investment in R&D, critical mineral sourcing, and industrial scaling will be essential to sustain this momentum.
Source: IE
India’s EV Push FAQs
Q1: What is the significance of India’s development of rare-earth-free EV motors?
Ans: It enhances India’s supply chain security, reduces dependence on China, and strengthens technological self-reliance in the EV sector.
Q2: How Simple Energy’s technological innovation addresses challenges posed by restricted heavy rare earth elements?
Ans: It replaces restricted HREE magnets with optimized compounds and proprietary algorithms, achieving near-identical performance without using banned materials.
Q3: What is the role of synchronous reluctance motors (SynRM) in promoting indigenous EV manufacturing?
Ans: Chara Technologies’ SynRM enables a fully magnet-free, India-sourced motor technology that reduces foreign dependence.
Q4: How do Chinese export controls on rare earths impact India’s EV industry?
Ans: They create supply chain vulnerabilities for EV manufacturers reliant on rare earth magnets.
Q5: Why is India sourcing all materials domestically for Chara’s magnet-free EV motors?
Ans: It advances Atmanirbhar Bharat, enhances technological sovereignty, and reduces geopolitical risks.
