Ola Electric Receives Govt Approval For Rare-Earth-Free Ferrite Motor: What Is It? | Markets News

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Ola Electric on Monday said it has become India’s first automotive original equipment manufacturer (OEM) to receive government certification for its in-house developed rare-earth-free ferrite motor.

“This marks a breakthrough milestone that eliminates reliance on imported rare-earth motors with permanent magnets,” Ola Electric said in a statement.

The certification, granted by the Global Automotive Research Centre (GARC), Tamil Nadu, follows extensive performance verification and mandatory motor power tests under AIS 041 standards notified by the Ministry of Road Transport and Highways (MoRTH).

According to the company, the ferrite motor — which was first showcased at Ola’s annual ‘Sankalp 2025’ event in August — delivers the same performance and efficiency as traditional rare-earth permanent magnet motors used in electric vehicles.

“The tests showed that Ola Electric’s in-house developed ferrite motor’s performance matched that of the motors with rare-earth permanent magnet motors in terms of net power for 7kW and 11 kW variants,” Ola Electric stated.

The homegrown ferrite motor eliminates the need for imported rare-earth materials, thereby reducing costs and insulating Ola Electric from global supply chain disruptions. Rare-earth magnets, primarily sourced from China, are critical components in conventional EV motors and often subject to price volatility and geopolitical risks.

With this approval, Ola Electric plans to integrate the ferrite motor across its entire product lineup, including its popular S1 series of electric scooters, it added.

The company said the shift would enhance product affordability, performance, and long-term sustainability for Indian consumers.

Ola Electric, India’s largest pure-play EV manufacturer, has been investing heavily in vertical integration — from battery innovation to component development — as part of its broader strategy to strengthen the domestic EV ecosystem and reduce import dependency.

Shares of Ola Electric on Monday were trading lower by 1.89% at Rs 53 apiece on the NSE. The stock is down 12.2% in the past one month. However, it is up by 26.6% in the past three months.

What Is Rare-Earth-Free Ferrite Motor?

A rare-earth-free ferrite motor is an electric motor that operates without using rare-earth elements such as neodymium or dysprosium, which are typically used in permanent magnet motors. Instead, it relies on ferrite magnets — made from iron oxide and other abundant materials — to generate magnetic fields. While ferrite magnets are less powerful than rare-earth magnets, advances in design and motor control technology have enabled comparable efficiency and performance.

The key advantage of ferrite motors lies in their cost-effectiveness, supply chain security, and sustainability, as they reduce dependence on expensive and geopolitically sensitive rare-earth imports, making them an attractive solution for large-scale electric vehicle production.