Can Ola's rare-earth-free motor power India's self-reliant EV revolution?

By replacing rare-earth magnets with ferrite, Ola aims to make EVs cheaper, locally sourced, and less reliant on Chinese supply chains. But key engineering hurdles remain

For years, the motors of global electric two-wheelers (e2W) have been powered by elements that are pulled from half a world away. Neodymium and dysprosium, the rare-earth metals refined mostly in China, have also often punctured the wheels of the clean-mobility revolution from turning due to geo-political shifts. Now, Bhavish Agarwal’s Ola Electric says it has found a way to keep the dragon out of the picture altogether, with a home-grown ferrite motor built from materials abundant in India’s  soil.

 

What’s the latest

 

On Monday, Ola Electric said its ferrite motor has been approved under AIS 041 for its 7 kW and 11 kW variants. The tests, conducted by a government-accredited testing facility in Tamil Nadu (Global Automotive Research Centre), verified that net power from these ferrite versions matches that of conventional motors using rare-earth permanent magnets.

 

Ola says the motor “delivers efficiency, performance and durability on par with rare-earth permanent magnet motors, while dramatically lowering costs and derisking supply chain fluctuations". The company first revealed the ferrite motor at its Sankalp 2025 event in August, and now plans to integrate it across its product line of scooters and motorcycles.

 

How the ferrite motor works

 

The pertinent question here is how ferrite motor functions. At its core, a ferrite motor uses ferrite (ceramic) magnets instead of ones made of rare-earths. Ferrite magnets are made of iron oxide combined with other elements like strontium or barium, which are cheap, abundant, and corrosion-resistant, though they produce weaker magnetic fields compared to rare earths.

 

In Ola’s design, these ferrite magnets are arranged in a 'spoke' pattern, embedded in a rotor that works via synchronous reluctance (magnet-assisted reluctance). Rather than depending on extremely strong fields from rare-earth magnets, torque is generated by the rotor’s changing reluctance as it rotates and magnetic flux paths shift, causing the rotor to align in lower reluctance positions. The ferrite magnets assist this alignment rather than being the sole source of torque. 

 

Because ferrite magnets produce lower remnant flux (approx. 0.4-0.5 Tesla) compared to rare earths (approx. 1.2-1.4 Tesla), the architecture and geometry must compensate (e.g. flux-concentrating design) to extract usable torque. 

 

How does it differ from other EV motors?

 

Permanent Magnet Synchronous Motors (PMSMs) 

These motors use rare-earth magnets (e.g. neodymium, NdFeB) in the rotor to produce strong, concentrated magnetic fields. This gives them high torque density and good efficiency even at low speeds. Because the magnets provide a constant magnetic field, the stator current only needs to supply a smaller additional field. They are compact and efficient, but expensive and sensitive to heat as magnets may degrade or demagnetise at high temperature.

 

Induction motors 

These motors do not use permanent magnets at all. Instead, the rotor is induced by electromagnetic fields generated in the stator as currents flow in the rotor via induction. Induction motors are robust and cost-effective, but suffer from rotor losses (resistive heating), lower efficiency especially at partial load, and typically lower torque density compared to PMSMs.

 

Ferrite motor (Ola’s model) 

Ola’s motor blends elements of both. It is a magnet-assisted reluctance motor using hardened ferrite magnets. It avoids reliance on rare-earth materials but uses magnets (albeit weaker) to enhance rotor alignment. The idea is to maintain torque and efficiency close to PMSMs, while improving thermal stability (ferrite magnets resist demagnetisation) and reducing cost. Compared to induction motors, it's more efficient because less current is wasted in the rotor. Compared to PMSMs, it trades off some compactness or ultimate torque, but gains supply security and cost benefits.

 

Why this matter for India’s EV ecosystem

 

Reduces dependence on China for rare-earth imports 

With over 90 per cent of global rare-earth refining being controlled by China and the geopolitical shifts in recent years, OEMs want to explore alternative methods. Many EV makers import neodymium-based magnets, along with the raw ores, making the supply chain geopolitically fragile. By developing rare-earth-free motors, Ola could insulate itself and its supply chain from such volatility.

 

Lowers component costs 

Magnet materials and their sourcing contribute significantly to motor cost. If ferrite-based motors can be mass-produced reliably, the savings can trickle to EV costs, helping Indian makers compete in a price-sensitive market.

 

Additionally, it also provides a boost to the Centre’s push for self-reliance in key technologies. A domestically innovated motor architecture contributes to that aim. If successful, this technology can strengthen India’s EV supply ecosystem, from raw materials to motor manufacturing.

 

Boosts export potential 

Industry experts are of the opinion that low-cost, magnet-independent motors may make Indian EV makers more competitive abroad. If performance scales, foreign markets concerned about supply chains may prefer such designs.

 

What challenges lie ahead? 

But the road ahead is riddled with challenges. Because ferrite magnets are weaker, motors may need larger rotors, more mass, or more winding to reach the same torque. That can complicate vehicle packaging, especially in compact scooters and motorcycles.

 

And then there are operational issues. One of the reasons that despite being invented in the 1930s, the ferrite motor is still not being widely used is because when the motor demagnetizes mid-operation, the effects include a reduction in its magnetic flux density, leading to decreased electromagnetic torque and efficiency. This irreversible demagnetisation compromises the motor's performance, potentially causing it to lose power and operate less effectively or stall under load.

 

Achieving high performance in magnet-assisted reluctance designs demands precise geometry, tight tolerances, and advanced control algorithms. Thus, early manufacturing costs may continue to be high until scale and technology mature.

 

Additionally, ceramic ferrite magnets are brittle and they may chip or crack under mechanical stress over time. Also, low-field regions or extreme temperatures could erode performance if not carefully engineered. 

 

What’s next? 

Ola plans to begin deploying its ferrite motors in its upcoming scooters and motorcycles soon which will help it address cost and sourcing challenges that have constrained electric vehicle (EV)-two wheeler adoption in price-sensitive Indian markets.

 

Earlier in July, Business Standard reported that TVS is similarly planning to adopt ferrite motors in its EVs. Industry watchers expect other rival EV makers to take note and many are likely to investigate magnet-free or ferrite-based motor architectures themselves, to diversify their dependence on rare-earth imports.

 

However, over the coming years, the real test will be consistency at scale and whether the motors built in thousands or millions of units can maintain performance, durability, and cost advantages.