Indian Startup Vimag Develops Magnet-Free EV Motor to Reduce Rare Earth Dependency

By: Harsh Vardhan

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Updated on: 19-Jul-2026 03:00 PM

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Vimag, a Bengaluru-based startup, has introduced a new electric vehicle (EV) motor that eliminates the need for rare earth materials. This innovation comes as global automakers, including Tesla, seek alternatives to reduce reliance on rare earths, which are largely controlled by China. Vimag's Virtual Magnet Synchronous Motor (VMSM) platform uses raw steel, copper coils, and software to generate magnetic fields inside the motor, replacing permanent magnets.

Key Highlights

• Vimag develops software-defined EV motor using steel and copper coils instead of rare earth magnets.
• China controls 90 percent of global rare earth supply and 94 percent of high-power motor magnets.
• India invests Rs 7,280 crore in domestic magnet production and supports magnet-free innovation.
• Vimag targets electric two- and three-wheelers for initial deployment of its magnet-free motors.
• Permanent magnet motors remain vital for high-performance vehicles pending further real-world validation.

Vimag’s Software-Defined Magnet Technology

Vimag operates on a $5 million budget and claims its technology can match or exceed the performance of conventional Permanent Magnet Synchronous Motors (PMSM). CEO Manish Seth explains that the company removes permanent magnets and uses copper coils, with software generating the necessary magnetic fields. This approach could help break China's dominance in the rare earth market, where the country controls about 90 percent of global supply and 94 percent of magnets used in high-power electric motors, according to the International Energy Agency (IEA).

Permanent magnets accounted for over 80 percent of the global EV motor market in 2022, based on IDTechEx research. Alternatives such as AC Induction Motors (ACIM), Synchronous Reluctance Motors (SynRM), and Switch Reluctance Motors (SRM) exist, but each presents challenges in size, efficiency, or performance. Vimag’s solution uses software to wirelessly transfer power inside the motor, manipulating the electromagnetic spectrum to create a virtual magnet.

Industry experts note that while motors without rare earth magnets are already in use, Vimag’s software-led approach could reduce dependency further. The company claims its motors can dynamically adjust the magnetic field in real time, potentially improving driving range and reducing battery requirements.

Supply Chain and Market Implications

China’s control over rare earth minerals has led to price spikes and supply chain concerns. For example, neodymium prices rose 750 percent and dysprosium by 2,000 percent after China restricted exports in 2011. Rare earth magnets can make up nearly a third of a motor’s cost, prompting automakers to seek alternatives for supply security and cost reduction.

India has significant rare earth deposits, but developing a refining ecosystem could take up to 15 years. The Indian government is investing Rs 7,280 crore under its REPM scheme to promote domestic magnet production while also supporting innovation in magnet-free technologies. This dual strategy aims to reduce reliance on imports and foster a resilient supply chain.

Vimag is focusing on electric two- and three-wheelers, which dominate India’s EV market. These vehicles operate on predictable duty cycles, making them suitable for early adoption of magnet-free motors. Experts believe that commercial vehicles and fleet applications, where cost and durability are critical, could benefit most from this technology.

Challenges and Future Prospects

Despite the promise, magnet-free motors face technical hurdles. Creating magnetic fields with software and electronics generates more heat, which can be difficult to manage over time. Larger motors may be needed to match the power density of permanent magnet designs. Additionally, reliance on advanced chips and robust software introduces new supply chain and safety challenges.

Vimag plans to ship between 1,000 and 10,000 motors by the end of the year. However, widespread adoption will require extensive real-world testing and validation by original equipment manufacturers (OEMs). Permanent magnet motors are expected to remain important, especially for high-performance vehicles, until magnet-free alternatives prove their efficiency and durability at scale.

India’s expanding semiconductor ecosystem and engineering talent provide a strong foundation for developing and scaling such technologies. The government’s Rs 1.25 lakh crore India Semiconductor Mission 2.0 (ISM 2.0) aims to support advanced power electronics and intelligent control systems needed for next-generation EVs.