India’s EV Push Amid Chinese Export Restrictions on HREEs

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.

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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