India’s EV Push Amid Chinese Export Restrictions on HREEs

Nov. 16, 2025

Why in News?

China—holding over 90% of global rare earth processing—has imposed curbs on exports of key heavy rare earth elements (HREEs) critical for EV motors, threatening global EV supply chains.
In response, Indian start-ups like Simple Energy and Chara Technologies are developing rare-earth-free or rare-earth-light electric motors.
This marks a crucial step toward Atmanirbhar Bharat, de-risking supply chains, and strengthening India’s EV ecosystem.

What’s in Today’s Article?

Background - China’s Rare Earth Export Controls:

Export curbs on 7 HREEs (April 2025): Samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium.
Expansion of export curbs (October 2025): Holmium, erbium, thulium, europium, ytterbium along with related magnets and materials.
Reason behind curbs: These restrictions emerged amidst a prolonged US–China trade war, creating strategic vulnerabilities for global EV firms.
Indian imports: India imported 2,270 tonnes of rare earths in 2023–24 (23% rise since 2019–20), with 65% reliance on China.

Indigenous Technological Responses in India:

Simple Energy:
- Key innovation: Developed and homologated a heavy rare-earth-free Permanent Magnet Synchronous Motor (PMSM).
- Eliminated restricted HREEs by:
  - Using optimised compound magnets (iron, neodymium, boron, praseodymium, holmium).
  - Employing proprietary algorithms for real-time heat, torque and magnetic field management.
- Performance: Almost 99.5% equivalence to conventional PMSM motors.
- Handling Chinese restrictions: Holmium was later added to the restricted list. The company has already developed holmium-free magnets and has buffer stock.
- Market presence: All current EVs use restricted-HREE-free motors. 1,050 units sold in October 2025 (highest ever, recording 215% YoY growth).
Chara Technologies:
- Key innovations: Developed India’s first EV-grade Magnet-Free Synchronous Reluctance Motor (SynRM), eliminating all magnet requirements.
- Overcame traditional SynRM limitation (low-speed industrial application) by creating -
  - High-speed, variable-speed EV-compatible motor.
  - Comparable torque and power to rare-earth-based PMSM motors, with only a slight increase in size — about 16% larger.
- Deployment: Currently used in agricultural and industrial machinery, with expected entry into the three-wheeler segment.

Strategic Significance for India:

Supply chain security: Reduces dependence on China’s volatile supply of rare earths. Mitigates risks for India’s rapidly growing EV and electronics industries.
Atmanirbhar Bharat and technological sovereignty: Boosts indigenous R&D, IP creation, and local manufacturing capabilities.
Geopolitical cushioning: Provides strategic resilience in the face of global critical mineral weaponisation.
Industry momentum: Ola Electric, TVS Motor and others are also exploring rare-earth-free motors (e.g., ferrite motor approved recently).

Challenges:

Technical and manufacturing challenges: Matching compactness, efficiency, and performance of rare-earth PMSM motors (especially for SynRM). Scaling production while reducing size and weight.
Cost and supply stability: Availability of alternative magnet compositions must be sustainable and cost-effective. Global rare earth volatility continues to pose uncertainty.
Market adoption: Original equipment manufacturers’ (OEM) willingness to shift from established PMSM technologies to new indigenous designs.
Raw material ecosystem: India still lacks a robust domestic rare earth mining, processing, and refining ecosystem.

Way Forward:

Strengthening critical mineral security: Accelerate exploration under the National Mineral Exploration Policy. Build processing/refining capacity through PPPs and global partnerships.
R&D and innovation support: Incentivise indigenous EV component technology under PLI schemes, R&D grants, and Start-up India.
Creating a local magnet and material ecosystem: Encourage production of ferrite, non-rare-earth magnets, and alternative alloys.
Scaling manufacturing: Support commercialisation via demand aggregation, state EV policies, and fleet adoption.
Strategic global collaboration: Tie-ups with Japan, Australia, US for technology and mineral supply diversification.

Conclusion:

India’s indigenous EV motor innovations represent a significant step towards technological self-reliance and supply chain resilience amid China’s tightening rare earth export controls.
These innovations are reducing India’s vulnerability, strengthening its EV ecosystem, and aligning with national goals of Atmanirbhar Bharat, energy security, and sustainable mobility.
Continued investment in R&D, critical mineral sourcing, and industrial scaling will be essential to sustain this momentum.