Centre to meet with automakers, others on rare-earth-free EV motors

Amid China's restriction of rare-earth permanent magnet exports to India, the ministry is looking into ways to reduce India's dependence on other countries

electric car, electric vehicle — The Heavy Industries Ministry plans talks with automakers on developing ferrite and reluctance motors—rare-earth-free alternatives to current EV designs—as China’s export limits squeeze supplies.

2 min read Last Updated : Nov 02 2025 | 10:49 PM IST

The Ministry of Heavy Industries (MHI) will soon convene a meeting with automakers and other stakeholders to discuss a research project aimed at developing ferrite and reluctance motors in India, the two types of electric motors that do not use heavy rare-earth permanent magnets, Business Standard has learnt.

“We are basically testing the waters with these new types of motors. This is a research project. The MHI is studying their use cases and whether any policy support is needed from the government,” a senior government official said.

China currently controls about 90 per cent of the world’s rare-earth permanent magnet (REPM) production. These magnets are used in several automobile components, especially in traction motors for electric vehicles. Since April, China has restricted REPM exports to India, impacting domestic automobile production.

“While it is clear that there is no substitute for REPMs right now that can provide the same level of efficiency, we need to look ahead to reduce our dependence on other countries. Therefore, we will call a meeting with stakeholders and assess what the MHI can do,” another senior official said.

A reluctance motor works without any permanent magnets. Its iron rotor is shaped so that magnetic flux constantly pulls it into positions of least resistance, generating torque. Since it relies only on the magnetic pull between the stator field and the iron rotor, it requires no rare-earth materials. These motors are cheaper and simpler to produce but usually offer lower torque density and can be noisier than magnet-based motors.

A ferrite motor, on the other hand, still uses magnets but replaces rare-earth types such as neodymium with ferrite magnets made from iron oxide combined with barium or strontium, materials that are abundant and inexpensive. Because ferrite magnets are weaker, engineers often pair them with a reluctance-style rotor to boost performance. This makes ferrite motors a rare-earth-free alternative that is more cost-effective and easier to source, though generally bulkier or less powerful than rare-earth magnet motors.