India’s EV market just got a major boost. Ola Electric, a leading homegrown two-wheeler manufacturer, has announced a big step toward self-reliance. In response to global concerns over China’s control of rare earth magnets, Ola plans to eliminate their use entirely in its electric motors starting from the October-December quarter. This bold move could shift the future of India’s EV industry.

Rare Earth-Free Motors Coming Soon

Ola has officially confirmed that it will begin using rare earth-free motors in its scooters by the end of this year. The company has been working on this technology for the past few years, but accelerated development after China restricted rare earth exports in April. Ola’s new motors are now ready and will soon be part of their production models.

Why This Matters

Rare earth magnets are widely used in EVs due to their compact size and strong output. China has dominated this sector for years, producing 60% of rare earth materials and handling 90% of global refining. With new restrictions in place, including tight export rules and multiple approvals, global industries are feeling the heat.

Ola’s Preparedness and Strategy

Ola stated that it manufactures its own motors, motor controllers, and software. This independence helped the company respond quickly to the supply crisis. Ola also mentioned that it has enough stock and has already secured supply from two other countries. Since they don’t rely on outside motor suppliers, switching to alternate sources became easier for them.

Impact on Other Companies

Other Indian EV makers like Bajaj Auto and TVS Motors have voiced concerns about the rare earth shortage and warned of potential production delays. Globally, many auto part makers are working on rare earth-free technologies, including Mahle, Valeo, Sterling Gtake, Sona Comstar, Greaves Cotton, Chara Technologies, and Atron Automotive.

Challenges with New Tech

While rare earth-free motors offer a way to reduce dependency, experts warn that adapting them to high-performance EVs won’t be easy. These motors still face issues like larger size, lower efficiency, and less power density. Large-scale use remains limited due to these technical barriers.

Government Support on the Way

To support local production and reduce reliance on China, the Indian government is planning a ₹1,345 crore scheme to boost domestic magnet manufacturing. This move aims to strengthen India’s supply chain and ensure long-term growth in the EV sector.