Rajarao Pochiraju
For more than a decade, some of the world’s biggest automobile manufacturers have pursued what seemed like the holy grail of electric mobility—a high-performance electric motor that does not depend on rare earth magnets. Billions of dollars have been invested, research teams assembled and futuristic concepts unveiled. Yet, commercial success has remained elusive.
Now, a Bengaluru-based startup with a valuation of just $5 million has quietly achieved what many global giants are still striving for.
Vimag Labs has secured its fifth Indian patent for its Virtual Magnet Synchronous Motor (VMSM)—a technology that eliminates the need for permanent rare earth magnets inside electric motors. While the innovation is still in the pilot stage and has not yet reached commercial mass production, it has generated considerable interest because of the strategic problem it seeks to solve.
The timing could not have been more significant.
Today’s electric vehicles overwhelmingly rely on Permanent Magnet Synchronous Motors (PMSMs), where powerful rare earth magnets are permanently embedded inside the rotor. These magnets deliver excellent efficiency and performance but come with a geopolitical price tag.
China dominates the global rare earth ecosystem unlike any other nation.
Although it possesses only around 35 per cent of the world’s rare earth reserves, China controls nearly 91 per cent of global refining and separation capacity and manufactures about 94 per cent of the sintered permanent magnets used in electric vehicle motors worldwide. The real leverage lies not beneath the ground but in processing and manufacturing.
That leverage has increasingly become a strategic weapon.
In April 2025, Beijing imposed export controls on seven heavy rare earth elements and related magnets, disrupting supplies across Europe and North America. Several automobile manufacturers reportedly had to trim production schedules due to shortages. Later that year, China expanded the restrictions to include products containing even a tiny proportion of Chinese rare earth materials, regardless of where they were manufactured.
The consequences have been immediate. Rare earth magnet prices outside China reportedly surged several-fold, adding hundreds of dollars to the manufacturing cost of every electric vehicle while leaving automakers scrambling for alternatives.
This is precisely where Vimag Labs believes it has an answer.
Instead of relying on permanent magnets, the VMSM creates and controls magnetic fields dynamically through sophisticated software, advanced power electronics and intelligent control algorithms. In simple terms, the magnetic field becomes virtual rather than physical.
If successfully commercialised, the implications could be profound.
The technology has the potential to free manufacturers from one of the most vulnerable links in the global EV supply chain. Rather than spending decades rebuilding alternative rare earth processing infrastructure, automakers could simply build motors that no longer require these materials.
It is a radically different approach.
Significantly, Vimag is not merely showcasing laboratory concepts. The company says it has already completed more than 87,000 engineering hours, initiated pilot programmes with two-wheeler and passenger vehicle manufacturers, entered into a manufacturing partnership with Jendamark, and is expanding applications into commercial vehicles, industrial systems, robotics, defence equipment and advanced cooling technologies.
Such progress naturally attracts attention, especially when established global players continue to work towards similar goals.
Tesla has indicated that its next-generation motors will reduce or eliminate rare earth dependence. Stellantis and General Motors have invested in alternative magnet technologies through Niron Magnetics. Valeo has been developing rare earth-free motors since 2022, while Honda is also exploring alternative solutions. Yet, most of these programmes remain several years away from commercial deployment.
That gives Vimag an opportunity to become an early technology leader rather than merely another supplier.
However, optimism must be tempered with realism.
Engineering success inside a controlled environment does not automatically translate into large-scale manufacturing success. Motors operating flawlessly during pilot projects must still prove long-term durability, reliability, thermal performance and cost competitiveness under demanding commercial conditions. Software-driven magnetic control also requires sophisticated power electronics, introducing additional complexity that manufacturers will evaluate carefully.
The road from innovation to industrial adoption is rarely straightforward.
Yet, even at this early stage, Vimag’s achievement carries significance far beyond one startup’s patent portfolio. It demonstrates that breakthrough engineering is increasingly emerging from India’s innovation ecosystem, challenging long-held assumptions that only multinational corporations possess the capability to redefine core industrial technologies.
As nations seek resilient supply chains and technological independence in an increasingly fragmented global economy, innovations like the Virtual Magnet Synchronous Motor represent more than engineering milestones. They symbolise strategic self-reliance.
Whether Vimag ultimately becomes a global manufacturing success story remains to be seen. But by questioning one of the electric vehicle industry’s most deeply entrenched dependencies, this Bengaluru startup has already ensured that the world is paying attention. In the race to shape the future of mobility, India may well have produced an unexpected contender.
