Simple Energy develops India's first heavy rare earth-free EV motor

This shields the e2W maker from dependence on elusive Chinese imports of critical minerals

Electric two-wheeler (e2W) maker Simple Energy, which is eyeing an initial public offering (IPO) in 2026-27 (FY27), has become India’s first original equipment manufacturer (OEM) to commercially manufacture heavy rare earth (HRE)-free motors. This shields the company from the dependence on Chinese imports of HRE motors, on which Beijing put a curb in April this year. 

At the heart of this innovation lies a patented motor architecture developed by Simple Energy’s in-house research and development (R&D) team. For years, heavy rare earth magnets have been the default in electric vehicle (EV) motors due to their high torque density and compact size. Hence, the crisis brought into picture the dire need for localisation efforts. Simple Energy has achieved 95 per cent localisation across its manufacturing and supply chain operations. 

 

Suhas Rajkumar, chief executive officer (CEO) and cofounder, Simple Energy, said: “Global supply-chain disruptions and material dependencies have made one thing clear: the future of electric mobility must be built on self-reliance. Deep localisation and a ‘Make in India’ approach are no longer aspirations — they’re imperatives.” 

“This patented, in-house technology replaces heavy rare earth magnets with optimised compounds, and is powered by proprietary algorithms that manage heat and torque in real time. Already in production, it proves that high performance can be achieved without compromising on sustainability or strategic independence,” Rajkumar added. 

In response to material restrictions, Simple Energy explored alternative compounds, and systematically tested combinations to deliver performance on a par with heavy rare earth-based systems. This was coupled with proprietary in-house algorithms that control how the motor manages heat, magnetic field, and torque delivery. 

The company has a 200,000 square feet manufacturing facility in Hosur, Tamil Nadu. The new motor line delivers the same “uncompromising performance” and torque-driven character, without relying on heavy rare earth elements. 

Unlike most EV players who rely on external suppliers, Simple Energy designs and manufactures its own motors. This allows full control over iterations, testing, and deployment, which the company claims helped it to come up with an in-house solution, outpacing peers. 

Crisis of this critical raw material had ailed companies like Bajaj Auto, which had navigated supply disruptions in July-August. 

  In the third week of August, the company said it has secured supply of rare earth magnets and other key materials to ensure availability during the upcoming festive season. Bajaj Auto faced significant production challenges, with output for the Chetak electric scooter reduced by up to 50 per cent in July. 

Founded in 2019 by Suhas Rajkumar and Shreshth Mishra, Simple Energy has secured over $41 million in Pre-Series A and Series A funding from marquee investors such as Balamurugan Arumugam, Vipul Khanna, Desai Family Office (APAR Industries’ promoters), Haran family office, Dr A Velumani’s family office, and the Vasavi group. It sells two vehicles — Simple ONE Gen 1.5 (248 km) and Simple OneS (181 km). 

With over 46 showrooms across key cities like Bangalore, Goa, Pune, Vijayawada, Hyderabad, Vizag and Kochi, Simple Energy is aggressively expanding its footprint. It plans to launch 150 new stores, and 200 service centres across India by FY26. Looking ahead, Simple Energy is preparing for an IPO in the second or third quarter of FY27, with plans to raise $350 million to accelerate product innovation, manufacturing scaleup, and deeper national market penetration.