Ola, TVS plans to move to ferrite magnets for electric scooters to cut rare earth dependence: Report

Ola Electric plans to introduce new models of electric vehicles powered by ferrite magnets in the third quarter (September-December) as an alternative to those using heavy rare-earth materials, thereby guarding against global supply disruptions, as reported by Business Standard on Wednesday.

Details about Ola's switch to ferrite magnets in EVs

According to sources, Ola Electric is developing a new generation of ferrite-based motors. The prototype was re-engineered to deliver both high efficiency and performance. It has been internally validated and tested on some of its vehicles.

As reported, a recent white paper by the Automotive Research Association of India (ARAI) specified the growing need for customised magnet solutions.

The report also mentions that TVS is working on similar ferrite motor technology. An official aware of the developments said that TVS is actively exploring alternatives, although the motorcycle manufacturing company has not issued an official response, the BS report said.

The German multinational engineering and technology company BOSCH have also used ferrite magnets in some of their electric motors, an ARAI executive was quoted as saying.

In earlier statements, Ola mentioned that its premium electric scooter models currently use rare-earth magnets sourcing the materials from countries beyond China, such as those in Southeast Asia and Europe.

The company reasoned that it has always preferred standardised magnet designs over customised ones.

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About ferrite magnets

Ferrite magnets are widely available now and relatively inexpensive. 

In April 2025, the Chinese government imposed a ban on 6 of the 17 rare earth elements. The Indian Commerce and Industry Minister Piyush Goyal remarked that China's ban on the export of rare earth is a global "wake-up call". He stated that India is actively developing alternative supply chains while positioning itself as a trusted partner for international businesses to reduce their dependence on Chinese suppliers.

Because of global availability and less vulnerability to geopolitical risks, ferrite magnets are gaining popularity.

However, ferrite materials have their limitations. Their magnetic flux is lower compared to rare-earth magnets, affecting a vehicle’s torque and power delivery.

They are also more prone to losing magnetism at extremely high temperatures, the BS report said.

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