For Bengaluru-based Bhakta Keshavachar, last week was unusually hectic. Cancelling pre-scheduled meetings, he rushed to Delhi at short notice after being called for a meeting with officials from the Ministry of Heavy Industries.
As China tightens its hold on rare earth magnet exports, India’s tech ecosystem is innovating to build rare earth-free EV motors that are cost-effective, sustainable and immune to geopolitical threats
For Bengaluru-based Bhakta Keshavachar, last week was unusually hectic. Cancelling pre-scheduled meetings, he rushed to Delhi at short notice after being called for a meeting with officials from the Ministry of Heavy Industries.
As the founder of Chara Technologies—a deep-tech hardware start-up developing rare earth magnet-free motors—he was in the national capital to discuss long-term solutions to reduce India’s reliance on China for rare earth magnets.
These materials, on which Beijing has imposed export restrictions, are central to the functioning of electric vehicle (EV) motors and the curbs have sent shockwaves through India’s EV industry.
While the immediate solution is to secure import licences from Chinese authorities, both Indian original equipment manufacturers (OEMs) and the government are now searching for domestic alternatives.
That’s where startups like Chara come into the picture. As the hunt for rare earth magnets becomes harder, India’s tech ecosystem is innovating to build rare earth-free EV motors that are cost-effective, sustainable and immune to geopolitical tantrums.
“These magnets [rare earth magnets or permanent magnets] are expensive, environmentally hazardous to extract and 90% controlled by China. We sensed this would become a known problem in five years,” says Keshavachar, who founded Chara in 2019 after exiting his fintech start-up Ezetap, which was acquired by Razorpay in 2022.
Chara is developing electric motors with ferrite magnets—the ones commonly used as fridge magnets. Keshavachar claims that the motors they have developed not only match but are able to outperform permanent magnet motors in some cases.
“There are three parameters for a motor: torque, power and efficiency. Torque and power we match. On efficiency, we do a little bit better,” he says.
According to Keshavachar, rare earth magnets cost around ₹6,000/kg while ferrite magnets cost about ₹400/kg. However, the trade-off comes in the weight of the motors. A ferrite magnet motor is 10–15% heavier than permanent magnet ones.
The increase in range that Chara's motors offer offsets the increase in weight, says Keshavachar. The company is now shipping about 150 motors a month for various applications, including three-wheelers, inside and outside India.
Different strokes
Meanwhile, Bengaluru-based Numeros Motors is looking to eliminate magnets altogether from EV motors. The electric two-wheeler maker in April signed an agreement with the Indian Institute of Technology (IIT) Bhubaneswar to undertake a two-year research project exploring non-magnet motor topologies while also working on rare earth-free motors.
“If we succeed, we will become independent of the rare earth magnets and the motor can be produced in a manner where 100% dependency of the raw materials will be on Indian suppliers. We will have an upper hand on that in terms of cost and technology,” says Chetan Kumar, Associate Vice President, Numeros Motors.
Despite these companies employing different approaches, they are driven by common concerns: the polluting nature of rare earth elements’ production and China’s monopoly on the supply chain.
“Initially, people did not care about motors. Slowly, they started realising it is a problem. Around two years ago, concerns about China grew. Today, we do not have to explain the risk,” says Keshavachar of Chara Technologies.
He says that while China was opening up magnet exports to the United States and Europe, India seems to have been singled out. “That is precarious. I suspect they will keep constraints. It is a form of strategic control—ensuring we do not stockpile beyond a month. It is clear they have weaponised their dominance in this space,” says Keshavachar.
According to Jaideep Wadhwa, Director at Sterling Gtake E-mobility, the government should also incentivise technologies that may help produce rare earth-free motors, like it is planning for rare earth mining and refining.
“Mining and refining locally is a part of the solution. The other part of the solution is supporting rare earth-free technologies. It is wise not to put all our eggs in one basket,” he adds.
In April, a team of researchers at Visvesvaraya National Institute of Technology (VNIT) said that it has developed a rare earth-free synchronous motor for electric vehicles (EVs), aiming to reduce India's dependence on imports dominated by China.
VNIT’s breakthrough replaces traditional electric vehicle motors with an indigenous design that delivers comparable performance while cutting costs by up to 25%. The technology features a unique motor structure and alternative materials, along with innovations in thermal management to prevent overheating and fire hazards.
The project is led by Associate Professor Ritesh Keshri at VNIT’s Centre for Advanced Mobility and is backed by a multidisciplinary team across electrical, mechanical and metallurgy departments. VNIT has also partnered with a Delhi-based start-up called Tsuyo to jointly advance and commercialise this technology for both passenger and commercial electric vehicles.
Strategic shift
Meanwhile, Faridabad-based Sterling Tools, one of India’s top auto component makers, does not fancy being left behind—especially when the auto industry is on the cusp of going electric. And it has a plan.
In May, its subsidiary Sterling Gtake E-Mobility signed a technology licensing agreement with the United Kingdom’s Advanced Electric Machines (AEM) to produce rare earth magnet-free electric motors using AEM's patented design.
The deal was a culmination of five years of discussions, which included Sterling educating AEM about the potential of India’s electric vehicle market, making the technology cost effective for the Indian market and obtaining assurance from OEMs of using the motors once they are production ready.
“During the initial discussions, it was found that the cost of these motors would be 2.5 times more than what the Indian market was willing to pay. The cost was lowered after we were able to convince them [AEM] that many of our customers, spanning from electric two-wheelers to trucks, were willing to use the new technology,” says Sterling Gtake’s Wadhwa.
AEM’s design replaces permanent magnets for an electrical steel rotor and copper windings with that of aluminium. Sterling is currently working on the adaptation of the technology according to Indian requirements.
It has also ensured that the supply chain for producing these motors remains free of geopolitical tensions. Hence, the company has identified local suppliers for almost all components that are to be used in the motors.
According to Wadhwa, the company will be able to supply the motors in the next six months to its customers. But it is going to be the testing and homologation process that may take time, he says.
“We know the technology is good. But we need to get it into product, get it on the road. That will take a lot of hard work.”