Indian start-ups take on China with rare-earth-free tech

The electric vehicle revolution is at a speed bump; and it’s made of rare earth metals. China, which commands nearly 90 per cent of the world’s rare earth mineral supply, has clamped down on exports of these critical elements, sending shockwaves through global supply chains. For automakers, this isn’t just a diplomatic headache, it’s an existential threat.

Rare earth elements are embedded deep within the EV ecosystem, and they’re the backbone of permanent magnets, especially neodymium-iron-boron (NdFeB) magnets and other crucial elements including dysprosium, samarium, that drive the electric motors themselves.

While industry players are scrambling for alternatives, Indian start-ups are stepping in with homegrown innovation. Companies like Chara Technologies, Conifer, Viridian Igni Propulsion, are among those developing other rare-earth-free motor alternatives for EVs and electronic components.

Chara Technologies, founded in 2019, has developed iron-based synchronous reluctance motors that use copper windings instead of rare earth magnets. These motors offer comparable efficiency to permanent magnet motors, with a tradeoff of being about 10–20 per cent heavier.

Chara has supplied motors to over 30 companies, and six of them have advanced to production-stage deployments. The company is already receiving international orders from OEMs in Italy and Belgium, even before establishing a formal presence in Europe. Its facility in Bengaluru’s Peenya industrial area currently produces 500 motors a month, with a roadmap to scale up to 2,000 motors monthly (25,000 annually).

Bhaktha Keshavachar, Founder and CEO

“Our motors can be as efficient as permanent magnet machines; the difference is they’re cleaner, scalable, and independent of volatile global supply chains,” says Bhaktha Keshavachar, Founder and CEO of Chara Technologies

Conifer, founded in 2022, has developed compact axial-flux motors use ferrite magnets, an inexpensive, widely available alternative that costs roughly one-twentieth of rare earth magnets. The technology has efficiency, and power density of rare-earth-based designs, claims Ankit Somani, Co-founder, Conifer.

Co-Founders-Ankit Somani and Yateendra, Conifer

The company asserts it has a 95 per cent reduction in stator core material and the elimination of scrap steel in its designs. Conifer’s facility in Pune will reach full capacity by Q12026, producing up to 70,000 units annually. Its focus is currently on motors under 30 horsepower- ideal for two-wheelers, three-wheelers, and compact delivery vehicles, and it’s already working with Indian OEMs and energy companies like Lyra Energy.

Another boot-strapped start-up Viridian Igni Propulsion, founded by Gopal Sriram, has built motors and controllers that eliminate the need for rare earth magnets, and do so at a cost that’s at least 40 per cent lower than conventional options.

At the heart of Viridian’s innovation is a hybrid motor architecture, which combines the high efficiency of reluctance motors and use of permanent magnets helps in extra torque boost and better power factor of motor. The result: a powerful, efficient, and reliable motor that doesn’t compromise on performance, explained Sriram.

Beyond tech, the economics are also tilting in their favour. “A ferrite magnet is around $5/kg, less than half the cost of copper and about one-twentieth that of rare-earth magnets,” says Somani. With magnet prices having surged during the pandemic and China’s grip on supply chains unrelenting, the appeal of homegrown, magnet-agnostic alternatives is only growing stronger. Conifer recently raised $20 million in seed funding to commercialise its powertrain platform.

Critical resource

Experts noted that the buzz around rare earth elements (RE) is the culmination of multiple factors and like oil; it is poised to become a critical resource in the geopolitical arena.

“Start-ups that develop alternatives to reduce dependency on rare earth products should see a structural advantage and increased tailwind. The use of EVs and advancement towards an electric economy, through booming sectors like EMS, semiconductors, and defence, has led to a surge in RE’s perceived importance worldwide. However, unlike oil, RE is even more geographically concentrated in terms of availability,” noted Vipul Patel, Partner, Seed Investing, IIMA Ventures.

Globally, rare earth processing remains a slow and toxic endeavour. It takes 10–15 years to find, permit, and develop a viable mine, and only a fraction (typically <1 per cent) of the extracted ore is useful. The rest is radioactive or toxic waste, expensive to manage in most countries.

India has the mineral resources, but developing processing and refining capabilities at scale will take years. In the meantime, start-ups like Chara and Conifer are rewriting the rules of EV motor design, not by replicating China’s playbook, but by rendering it obsolete.

Published on June 19, 2025