Ola Electric Mobility Share Price Rises Over 2% as Company Unveils Rare Earth Free Motor

Ola Electric Mobility’s stock gained over 2% after the company announced its latest innovation at the Sankalp 2025 event on Independence Day. The electric two wheeler maker unveiled a ferrite motor that eliminates the use of rare earth magnets.

The event, held at its gigafactory in Krishnagiri, Tamil Nadu, highlighted the company’s plans to roll out the motor in phases beginning Q3 FY26.

Global Supply Chain Risks and Ola’s Strategic Move

Rare earth minerals,17 in total are essential in the production of automobiles, consumer electronics, and defence equipment. China currently accounts for more than 70% of global rare earth output and 90% of refining, giving it overwhelming control of the supply chain.

This dominance has created vulnerabilities for global EV makers, who have faced delays and disruptions due to export restrictions. Ola’s move is designed to enhance supply chain independence and sustainability while addressing these geopolitical challenges.

CEO’s Perspective

Addressing employees at the event, Ola Electric’s founder and CEO Bhavish Aggarwal underlined the importance of building advanced technologies in India. He noted that global trade tensions, including tariffs and restrictions, make it imperative for India to leapfrog into next generation solutions. He emphasised that the new motor aligns with Ola’s goal of creating world-class products while reducing dependence on limited supplier nations.

Early Development and Acceleration

Ola Electric revealed that it began research into rare earth free motors a couple of years ago.

However, the project gained momentum in April 2025 after China tightened controls on exports, in response to tariff measures imposed by the United States.

According to Chinese customs data, the country exported 7,742.2 metric tonnes of rare earths in June, up from 5,864.6 metric tonnes in May, though the data did not distinguish between categories of rare earth products, some of which remain outside the scope of the restrictions.

Read More: Ola Electric Q1 FY26 Earnings Results: ₹428 Crore Loss, Revenue Down 50%.

Conclusion

Ola Electric’s rare earth free motor marks a pivotal step in reshaping the EV supply chain landscape. With deployment beginning in FY26, the move not only strengthens the company’s technological edge but also positions India to mitigate risks associated with overdependence on China’s rare earth monopoly.

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