The Indian startup Vimag Labs has unveiled an electric motor that completely eliminates the need for rare earths, a key material dominated by China. Its innovation is based on an advanced software control system instead of permanent magnets.
The Indian startup Vimag Labs has developed an electric motor that entirely removes the use of rare earths, strategic materials whose supply is almost entirely controlled by China. The key to its technology lies not in a new material, but in a sophisticated software control system that generates the magnetic field in real time.
An alternative to Chinese dependency
According to the International Energy Agency (IEA), China accounts for 91% of global rare earth processing for magnets and 94% of permanent magnet production. These components are essential in most electric cars, wind turbines, industrial robots, and data centres. Dependency on a single country poses a geopolitical and supply risk that the industry has been trying to mitigate for years.
The conventional motor uses powerful permanent magnets to generate the magnetic field that moves the vehicle. Vimag Labs proposes a radical change: instead of magnets, an advanced electronic management system creates the magnetic field exactly where it is needed, in real time, using a software-based system. In this way, the company claims it is possible to eliminate rare earths without sacrificing performance.
87,600 hours of engineering and initial tests
The founder and CEO of Vimag Labs, Manish Seth, has revealed that the development of this technology has required more than 87,600 hours of engineering. The project has already obtained its first patent and has closed a funding round of €4.4 million. Furthermore, the company states that it is already conducting tests with motorcycle and car manufacturers.
However, the technology has yet to be tested on a large scale under real driving conditions. Critics point out that motors without permanent magnets often exhibit a higher energy consumption than conventional solutions. It will be necessary to verify whether Vimag Labs' system overcomes this disadvantage through its electronic management or if it ultimately penalises efficiency.
Other alternatives in development
The search for alternatives to rare earths is not exclusive to this startup. Tesla announced in 2023 that its next generation of motors would eliminate rare earths. General Motors and Stellantis are promoting new alternative magnets. BMW already uses motors without permanent magnets in several electric models, generating the magnetic field through electrically powered coils, although this adds weight due to the copper. Astemo, the joint venture of Hitachi and Honda, has developed a reluctance motor that also does not require permanent magnets.
Beyond technology, economic interest is key. Reducing dependence on a few producing countries minimises the risk of supply disruptions and sharp price increases for raw materials, which impacts the manufacturing cost of electric cars. According to the IEA, global demand for rare earths for magnets has doubled since 2015 and is expected to grow another third before 2030.
If Vimag Labs can demonstrate its industrial viability, future electric cars could be more affordable and less vulnerable to raw material market tensions. For now, the startup is progressing with its patent and initial tests, although the path to mass production is still long.
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