Ola Electric Gets Government Certification for Rare-Earth-Free Ferrite Motor in Industry First

Ola Electric Mobility Limited has achieved a significant milestone by becoming India's first automotive original equipment manufacturer (OEM) to receive government certification for its in-house developed ferrite motor that eliminates the need for rare-earth magnets. The certification was granted by the Global Automotive Research Centre in Tamil Nadu following rigorous performance verification and motor power tests under AIS 041 standards notified by the Ministry of Road Transport and Highways. 

The announcement, made on 6 October 2025, represents a breakthrough in India's electric vehicle manufacturing capabilities, marking a departure from the industry's dependence on imported rare-earth materials predominantly sourced from China. The ferrite motor underwent comprehensive testing that demonstrated performance levels matching conventional rare-earth permanent magnet motors for both 7kW and 11kW variants.

The fundamental chemistry behind Ola Electric's ferrite motor represents a significant technological shift from traditional rare-earth based systems. Ferrite magnets are primarily composed of iron oxides, typically containing magnetite (Fe₃O₄) and other metal oxides. This contrasts sharply with neodymium magnets, which are composed of neodymium (Nd), iron (Fe), and boron (B). 

The key advantage of ferrite magnets lies in their abundant availability and lower cost structure. Ferrite materials cost approximately one-tenth the price of neodymium per unit of weight. However, they also deliver significantly lower magnetic strength, typically producing 800-1,000 gauss compared to neodymium magnets' 3,500 gauss. Despite this apparent disadvantage, Ola Electric claims its ferrite motor delivers equivalent performance through innovative engineering and design optimisations.

Ferrite magnets demonstrate superior temperature stability compared to rare-earth alternatives, maintaining performance across wider temperature ranges. They also exhibit excellent corrosion resistance without requiring protective coatings, unlike neodymium magnets which are prone to oxidation in humid environments. 

The elimination of rare-earth elements addresses critical supply chain vulnerabilities that have plagued the automotive industry. China controls approximately 69% of global rare-earth production, with Myanmar contributing an additional 11%, effectively giving China influence over 80% of worldwide supplies when considering geopolitical alignments. India imports 93% of its rare-earth magnets from China, highlighting the strategic vulnerability. 

Recent export restrictions imposed by China have created acute supply shortages for Indian manufacturers, with industry estimates suggesting current stocks may last only 2-3 weeks. This supply constraint has prompted urgent responses from automotive manufacturers and government agencies alike. 

Ola Electric's ferrite motor technology represents a strategic response to these geopolitical risks. The company first announced its ferrite motor development at the Sankalp 2025 event in August, promising to transition its entire product portfolio to the new technology within 2-3 quarters. This timeline positions Ola Electric ahead of competitors in achieving supply chain independence. 

Ola Electric shares have experienced significant volatility in recent months, with the stock closing at ₹52.42 on 6 October 2025, down 2.91% from the previous session. The company's market capitalisation stands at approximately ₹22,581 crores. Since the beginning of 2025, Ola Electric shares have declined nearly 50%, reflecting broader challenges facing the electric vehicle manufacturer. 

The stock has been trading below key moving averages and currently sits 73% below its peak levels. Recent months have seen considerable selling pressure, with the share price touching a record low of ₹39.58 in July 2025. The latest ferrite motor announcement did not generate an immediate positive market reaction, with shares continuing their downward trajectory. 

The certification milestone extends beyond Ola Electric's immediate business interests, potentially reshaping India's automotive manufacturing landscape. Other manufacturers, including TVS Motor, are reportedly pursuing similar ferrite-based alternatives to reduce rare-earth dependency. This industry-wide shift could establish India as a leader in rare-earth-free automotive technology. 

The ferrite motor technology aligns with India's broader "Atmanirbhar Bharat" (self-reliant India) initiative, particularly in critical technology sectors. Government support for domestic rare-earth alternatives includes proposed incentive schemes worth ₹5,000 crores to support local magnet production capabilities. 

Manufacturing advantages of ferrite motors include simplified construction, reduced maintenance requirements, and enhanced durability. These characteristics make them particularly suitable for commercial vehicle applications, though traditional limitations include higher noise levels that may restrict passenger car adoption. 

The successful certification validates the feasibility of ferrite-based electric motors for automotive applications, potentially encouraging broader industry adoption. As supply chain disruptions continue affecting rare-earth availability, Ola Electric's technological breakthrough may establish a new paradigm for electric vehicle manufacturing in India and globally.

With certification now secured, Ola Electric plans to integrate ferrite motors across its product lineup, potentially offering cost advantages to consumers while reducing India's strategic dependence on Chinese rare-earth supplies. The company's achievement demonstrates that technological innovation can address geopolitical supply chain challenges whilst maintaining performance standards required for modern electric vehicles.