Light rare earths, no magnets, and a resolve to break free of China's iron grip

Mint

5 days ago

New Delhi: Indian auto component and two-wheeler makers have devised a plan to break free from China's stranglehold on magnets: replace heavy rare-earth elements with light ones, or better yet, build magnet-free automotive motors.
Sona Comstar, the country's eighth largest parts maker, has developed new motors using light rare earth elements like cerium, samarium and neodymium,according to a top company executive.Ather Energy Ltd's co-founder and chief executive Tarun Mehta, too, toldMintthat the two-wheeler industry can move towards light rare earth magnets.Meanwhile, Ola Electric's founder and managing director Bhavish Aggarwal informed investors on Monday that the company has developed magnet-free motors, which will be installed in vehicles whose deliveries will start in the October to December quarter.
Rare earth elements, while abundant but not easily found in large mineable deposits, are known for their unique magnetic and luminescent properties. They are widely used in automotive motors and LED lights. China dominates the refining and supply of 90% of heavy rare earths or those with higher atomic weight, according to estimatesby the International Energy Agency.However, its share in light rare earths is estimated to be lower at 60-70%, making the supply chain more diverse.
Gurugram-based Sona Comstar said light rare earth solutions can be used in the medium term by two- and three-wheeler makers, and even small car manufacturers, as they require less power to run.
'[But] all these alternative motors would require months of testing and validation with customers before commercial production can begin," Vivek Vikram Singh, managing director and group chief executive at Sona Comstar, said in response toMint'squeries.
'In the short term, there is no alternative to Chinese heavy rare earth element (HREE) magnets, but in the medium term, HREE-free magnets can be used as viable alternatives…"About 41% of Sona Comstar's revenue in the financial year 2025 came from the manufacturing of micro/plug-in hybrid starter motors, traction motors and controllers, conventional starter motors and suspension motors.
Traction motors, which power electric vehicles, require magnets. Other types of motors can also use rare earth magnets for compactness and high performance, but they can operate without them as well.
'For the last couple of years, we have been developing rare-earth-free motors," Ola Electric said in a shareholder's letter. 'We accelerated this program in April when the rare earth cuts happened and have already productionised our rare-earth-free motors, which will be coming into our products starting next quarter."
Diversified supply chain
China started restricting exports of rare earths in April after trade tensions worsened with the US due to tariffs imposed by the Donald Trump administration.
Indian automakers raised an alarm soon after. In May, Bajaj Auto Ltd said after the company's January-March results that the entire electric vehicle business would be threatened due to new restrictions imposed by China on exports.
China imposed restrictions on seven rare-earth elements, mostly heavy rare earths including yttrium, scandium, lutetium and dysprosium.
'The supply chain for light rare-earth elements (LREEs)…is more diversified than that for heavy rare-earth elements (HREEs), as LREEs (like cerium and lanthanum) are more abundant in different countries, including India, and are less affected by China's specific restrictions," said Rishabh Jain, senior programme lead, Council on Energy, Environment and Water (CEEW).
Ather Energy's Mehta said, 'The industry has a way of moving past this. Stop using heavy rare-earth magnets. Unlike cars, trucks, or buses, our industry can build motors without using heavy, rare-earth magnets. We can move towards lighter, rare-earth magnets."
Doubts on efficiency
However, there are still doubts regarding whether the efficiency of heavy rare earth magnets can be matched.
'The ongoing research indicates that substituting heavy rare earths or even neodymium with more abundant light rare earths like cerium can result in reduced magnetic strength and thermal stability, meaning a loss in performance at high temperatures, which are crucial for automotive and high-efficiency motor applications," CEEW's Jain said.
'Substituting HREEs with cerium in neodymium-based magnets can reduce costs but requires 20–30% more material to match HREE performance, thus increasing motor size/weight."
Companies, including Sona Comstar, are working on finding solutions to ensure performance does not suffer due to the change in elements. Yet, not many solutions are still available for heavy passenger vehicles.
'For larger power motors for larger vehicles, these alternatives (light rare earths) seem difficult without sacrificing efficiency, range and/or cost," Singh of Sona Comstar said.
Earlier, Reuters reported that Sona Comstar is also looking to make rare earth magnets within the country to become self-sufficient in the supply chain.
Pricing concerns
Industry executives also worry that there will be a rush for light rare earth elements, which are found in abundance outside of China, but can still lead to disruptions and increases in prices. This suggests that in the long term, magnet-free motors can also become viable.
Ola Electric finds magnet-free motors a better solution as they have managed to match the performance of magnet-based motors, according to its letter to investors. 'These motors ensure no business continuity risk, are parity in performance and save money as rare earth magnets are costly."
According to Ankit Somani, co-founder at Conifer, a rare earth magnet-free motor maker, although light rare earth production is more diversified, the processing is still dominated by China. 'Moreover, there is a rush already from across the globe for securing light rare earths from countries other than China, which has led to price increases and longer lead times."