Ferrite vs Rare-Earth: Is Rare-Earth-Free Motor a game-changer that EV industry needs?
Ola Electric recently announced that it has developed a new traction motor for its two-wheelers that does not rely on rare-earth magnets. Instead, it uses ferrite magnets, which are significantly cheaper and more abundant. The development has generated wide attention, given the strategic importance of rare-earth elements in the electric vehicle (EV) ecosystem.
Globally, permanent magnet synchronous motors (PMSMs) account for more than 70–80% of EV traction motor adoption. These motors typically use neodymium-iron-boron (NdFeB) rare-earth magnets, which provide high magnetic strength, enabling compact size, high torque density, and excellent efficiency.
However, this dependence comes at a cost. Rare-earth elements are expensive, their prices are volatile, and their supply chains are highly concentrated. This creates potential risks for EV manufacturers, both in terms of cost escalation and supply security.
The Case for Ferrite Magnets
Comparison of Rare Earth Magnet vs Ferrite Magnet Motors Ferrite magnets are one of the oldest types of permanent magnets and are widely available at a fraction of the cost of rare-earth materials, where rare-earth magnets can cost around ₹6,000 per kg, while ferrite magnets are closer to ₹400 per kg. They are chemically stable, relatively easy to source, and less vulnerable to geopolitical pressures.
The challenge has always been their weaker magnetic strength, which traditionally meant bulkier or less efficient motors. However, with clever engineering and smarter control electronics, ferrite-based motors can now deliver performance close to rare-earth designs for mid-power applications such as two-wheelers. They may not be ideal for high-performance cars where compactness and efficiency are critical, but for scooters and motorcycles, ferrite motors strike a strong balance between affordability, reliability, and supply security.
Comparison of Rare Earth Magnet vs Ferrite Magnet Motors
Source: Electric Vehicle Motors Free of Rare-Earth Elements—An Overview, 2025; High Performance Low Cost Electric Motor for Electric Vehicles Using Ferrite Magnets, 2015; JMK Research
Industry Implications
Rare-earth-free motors are becoming a strategic priority in India’s EV ecosystem. Ola Electric to be the first Indian company to have received government certification from Global Automotive Research Centre (GARC) in Tamil Nadu for its ferrite motor, while Simple Energy has announced the start of commercial production of heavy rare-earth-free motors. TVS Motors is also reported to be working on similar technologies, and startups like Chara Technologies are developing rare-earth-free solutions for traction motors.
Globally, there are cases where Tesla has used rare-earth free motors (AC induction motors) in several of its models for ruggedness and cost-effective advantage, and Renault Zoe employed a synchronous motor to reduce reliance on rare-earth metals, both in 2012. These examples demonstrate that building EVs without heavy reliance on rare-earth magnets is possible with the right engineering approach.
Industry estimates indicate that such motors could be 30–60% cheaper to manufacture than rare-earth-based designs, offering both supply chain security and cost competitiveness. In the near-term, rare-earth magnet free motors are expected to power mass-market scooters and small EVs, while rare-earth PMSMs may continue to dominate in cars and premium applications.