As India’s electric vehicle (EV) market continues to expand, one Bengaluru-based startup is tackling one of the industry’s biggest supply chain challenges. Vimag Labs has developed a software-defined electric motor that operates without permanent magnets, potentially reducing India’s dependence on rare earth materials largely sourced and refined in China.
Founded by automotive industry veteran Manish Seth, the startup aims to offer a locally manufactured, high-performance alternative that could strengthen India’s EV ecosystem while making supply chains more resilient.
A Pandemic Disruption Sparked the Innovation
The idea behind Vimag Labs’ breakthrough technology emerged during the COVID-19 pandemic in 2020.
At the time, a shipment of permanent magnets required for prototype electric motors became stranded at Shanghai Port due to global lockdowns. The delay highlighted the risks of relying heavily on a single country for essential EV components.
For founder Manish Seth, who has decades of experience establishing manufacturing facilities for global automotive giants such as Volkswagen, Ford, and General Motors, the disruption became the catalyst for developing an entirely new motor architecture that eliminates the need for permanent magnets.
Why Rare Earth Magnets Are a Major Challenge
Permanent magnets are widely used in modern electric vehicle motors because they deliver high efficiency and compact performance. However, producing these magnets depends heavily on rare earth minerals.
According to the International Energy Agency (IEA), China controls nearly 90% of the global rare earth supply chain and around 94% of permanent magnet production used in high-performance electric motors.
This dominance has created significant supply chain risks for automakers worldwide, particularly as demand for electric vehicles continues to rise.
How Vimag’s Magnet-Free Motor Works
Instead of relying on permanent magnets, Vimag Labs uses a combination of copper, steel, advanced electronics, and proprietary software to generate the magnetic fields needed to power the motor.
The company’s firmware continuously manages the flow of electricity through specially designed copper coils, creating highly controlled electromagnets that mimic the performance of permanent magnets.
Unlike conventional electric motors that depend on brushes or slip rings for power transmission, Vimag’s design wirelessly transfers power within the motor assembly, reducing mechanical complexity.
Because the motor’s performance is controlled through software, future improvements can be delivered through over-the-air software updates, allowing manufacturers to enhance efficiency without changing hardware.
Better Efficiency Without Rare Earth Materials
Vimag says its software-driven technology delivers performance comparable to conventional permanent magnet motors while offering several additional benefits.
Potential advantages include:
- Reduced dependence on rare earth minerals
- Improved energy efficiency
- Lower battery consumption
- Increased driving range
- Software-based performance upgrades
- Reduced performance degradation caused by heat and ageing
These features could make the technology especially attractive for India’s rapidly growing electric mobility sector.
Environmental Benefits of Magnet-Free Technology
Beyond supply chain advantages, Vimag’s innovation also addresses environmental concerns associated with rare earth processing.
Refining rare earth minerals generates thorium, a radioactive by-product that requires specialised handling and disposal. This makes rare earth processing both environmentally challenging and expensive, limiting production outside China.
By eliminating permanent magnets altogether, Vimag’s motor could significantly reduce the environmental impact associated with electric motor manufacturing.
Designed and Manufactured in India
One of the biggest strengths of the technology is its domestic manufacturing potential.
Since the motor primarily relies on copper, steel, and standard electronic components, Vimag says it can be manufactured entirely within India without depending on imported rare earth materials.
The company has already secured five Indian patents protecting its proprietary motor technology.
Collaborating With Major Automotive Companies
Vimag Labs is currently validating its technology through partnerships with several leading automotive manufacturers.
According to the company, it is working with:
- A top-five Indian two-wheeler manufacturer
- The electric vehicle division of a well-established Indian automobile company
- A leading three-wheeler powertrain supplier
- A major passenger vehicle manufacturer
- A European Tier-1 automotive supplier
These collaborations are expected to help accelerate commercial adoption of the new motor technology.
Funding Plans and Future Expansion
Vimag Labs has raised $5 million in Series A funding, led by Accel, and is preparing for another investment round to support expansion.
The startup aims to manufacture between 1,000 and 10,000 electric motors by the end of the year.
In addition to its motor technology, the company is developing a custom semiconductor chip that could reduce electronics costs by as much as 90%.
Looking ahead, Vimag plans to expand its technology beyond passenger EVs into electric buses, trucks, commercial vehicles, and defence applications, including projects in collaboration with the Indian government.
Conclusion
Vimag Labs’ software-defined, magnet-free electric motor represents a significant step toward reducing India’s dependence on China’s rare earth supply chain. By replacing permanent magnets with advanced software and locally available materials, the startup aims to strengthen domestic manufacturing, improve supply chain resilience, and support the country’s growing electric vehicle industry. If successfully commercialised, the innovation could reshape the future of EV motor technology while helping India move closer to self-reliance in clean mobility.