Highlights
- Indian startups are challenging China’s rare earth monopoly by creating electric vehicle motor technologies that eliminate or reduce dependency on critical materials.
- Companies like Chara Technologies, Conifer, and Viridian Igni Propulsion are developing alternative motor designs that are more cost-effective, environmentally sustainable, and independent of volatile global supply chains.
- These innovative motor technologies represent a strategic approach to addressing geopolitical challenges and advancing green technology manufacturing beyond traditional rare earth dependencies.
In a June 19 article (opens in a new tab), The Hindu BusinessLine reported that Indian startups are racing to break China’s near-total monopoly on rare earth elements by designing electric vehicle (EV) motor technologies that bypass the need for these critical materials. With China controlling nearly 90% of the global rare earth supply and having recently tightened export restrictions, automakers around the world are scrambling to secure alternatives. Indian companies such as Chara Technologies, Conifer, and Viridian Igni Propulsion are at the forefront of this effort, offering innovative motor designs that eliminate or significantly reduce the use of rare earths like neodymium, dysprosium, and samarium.
Chara Technologies, based in Bengaluru, is perhaps the most prominent of these upstarts. Founded in 2019 by Bhaktha Keshavachar, a former Intel engineer and co-founder of the payments startup Ezetap, Chara has developed synchronous reluctance motors that operate without the use of rare earth magnets. According to an article published on June 17 in Inc42, these motors are 5% more efficient than traditional permanent magnet motors. Major Indian companies, including Godrej, Greaves Cotton, and Sonalika, are already using them. Chara claims it currently serves 50 clients, with international orders already flowing in from Europe, including Italy and Belgium.
Keshavachar had long foreseen the supply chain vulnerabilities posed by dependence on rare earths. After exiting Ezetap in 2021, he teamed up with automotive veterans Mahalingam Koushik and Ravi Prasad to tackle this challenge head-on. With initial support from IISc Bengaluru and seed funding from Kalaari Capital and other investors, Chara first experimented with switched reluctance motors before pivoting to synchronous reluctance designs, which addressed key problems related to noise, torque ripple, and control complexity.
Chara’s motors are now being produced at a rate of 500 units per month at its Peenya facility in Bengaluru, with plans to scale up to 2,000 monthly by the end of 2025. Its bestselling variants are 14 kW and 16 kW motors, suitable for three-wheelers and industrial machinery. While heavier than their magnet-based counterparts—typically by 10 to 25%—Chara’s motors offer compelling advantages in terms of cost, supply chain independence, and environmental sustainability. “Our motors can be as efficient as permanent magnet machines; the difference is they’re cleaner, scalable, and independent of volatile global supply chains,” said Keshavachar in The Hindu BusinessLine.
Another player making waves is Conifer, founded in 2022, which builds compact axial-flux motors that use inexpensive ferrite magnets instead of rare earths. Co-founder Ankit Somani explained that ferrite magnets cost about $5 per kilogram—roughly one-twentieth the cost of rare earth magnets—and Conifer’s motors retain the efficiency and power density of rare-earth designs. Their manufacturing facility in Pune is expected to hit full capacity by early 2026, producing up to 70,000 motors annually. The company is already working with domestic OEMs and energy players like Lyra Energy and recently raised $20 million in seed funding to commercialize its powertrain platform.
Viridian Igni Propulsion, a bootstrapped venture led by Gopal Sriram, has also entered the scene with hybrid motor architectures that mix reluctance designs with optional magnet boosts to optimize torque and power factor, still with a 40% cost advantage over conventional designs. Viridian’s approach emphasizes modularity and cost-effectiveness, key considerations for emerging electric vehicle (EV) applications in India and beyond.
The underlying urgency for these innovations is both geopolitical and technological. Experts quoted in The Hindu BusinessLine emphasized that rare earths are quickly becoming the new oil in global power dynamics. “Start-ups that develop alternatives to reduce dependency on rare earth products should see a structural advantage and increased tailwind,” said Vipul Patel of IIMA Ventures. Developing new mines can take 10 to 15 years and usually involves large amounts of radioactive waste, making rare earth processing both slow and environmentally hazardous.
India has rare earth deposits but lacks large-scale refining and processing capabilities. As that gap remains, Indian startups are carving a new path—not by replicating China’s rare earth dominance but by innovating beyond it. Chara, for instance, has filed nine patents and expects to receive at least two in the coming months. The company is also exploring contract manufacturing options, including a partnership with Greaves Cotton, to scale up more efficiently.
According to Inc42 (opens in a new tab), Chara’s goal for FY26 is to sell 15,000 motors and reach $5 million in revenue, buoyed by a Series A funding round of INR 50–60 crore currently in progress. Approximately 60% of its revenue already comes from non-automotive sectors, such as agriculture, construction, and industrial machinery, where regulatory barriers are lower.
Despite challenges such as the heavier weight of non-rare-earth motors and difficulties accessing capital for deep-tech ventures, these Indian startups are advancing a broader vision: a cleaner, more resilient supply chain for electric vehicles (EVs) and other green technologies. By side-stepping the rare earth roadblock, they are not just solving a local engineering challenge—they are redefining the global narrative on sustainability and self-reliance.
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