Amidst China’s halt on rare-earth magnet supply, Indian electric two-wheeler company Ola Electric has announced that it will introduce rare-earth-free motors in its two-wheelers in the October to December quarter.
The company stated that rare-earth elements could pose a major threat to the automotive industry in the future.
Ola Electric explained, “For the past few years, we have been working on rare-earth-free motors. In April, when China curtailed rare-earth, we accelerated this work, and now our rare-earth-free motors are ready, which will be used in our products from the next quarter.”
Rare-earth magnets are widely used in electric vehicles and digital systems of the auto industry due to their small size and high capacity. For many years, China has dominated this sector. It produces 60% of the world’s rare-earth elements and also possesses 90% of the refining capacity.
China Imposed Strict Export Conditions
In April, China imposed strict conditions on the export of rare-earth elements and magnets, including special permits for import, ensuring it would not be used by the military, and requiring approval from several ministries and the Chinese embassy. This has impacted the entire global automotive and other industries. Ola Electric said, “We manufacture motors, motor controllers, and software ourselves, so we have many measures to deal with this crisis.”
The company stated that they have a good quantity of stock and are receiving magnet supplies from two countries, so there is no major crisis currently. The company further added, “We are not dependent on any external motor supplier, so we were able to make quick changes and started procuring magnets from other sources.”
These Companies Had Expressed Concern
Other major electric two-wheeler companies like Bajaj Auto and TVS Motor recently expressed concern over disruptions in magnet supply from China and warned of production halts. Many auto parts manufacturers in India and worldwide are working on developing alternatives to rare-earth magnets. Companies like Mahle, Valeo, Sterling Gtake, Sona Comstar, Greaves Cotton, Chara Technologies, and Atron Automotive are also researching rare-earth-free motors or alternative systems. However, while rare-earth-free motors can reduce dependence on these materials, experts say that adopting these technologies for high-performance electric vehicles is not easy.
What are the Challenges?
These new technologies are facing issues such as lower power density, lower efficiency, and increased motor weight and size. So far, they have not been widely adopted. Meanwhile, the Indian government is considering introducing a ₹1,345 crore scheme to promote domestic magnet production. This scheme will be part of a strategy to reduce dependence on China and strengthen the country’s supply chain.