Here’s a good news from the Indian electric vehicle (EV) space that’s a big deal for everyone, from riders to the entire auto industry. Bengaluru-based startup Simple Energy has just announced that they’ve started commercial production of rare-earth-free motors for their electric scooters. This is a game-changer, and here’s why.
This big announcement came out on Tuesday, Sep 16 2025, and it’s a huge step for the company. Simple Energy, a homegrown EV startup founded in 2019 by Suhas Rajkumar and Shreshth Mishra, has been making waves with its electric scooters like the Simple One. While the company has faced some delays and funding issues, this new development puts them right back in the spotlight. They’ve managed to pull off something that many global companies are still working on: creating a high-performance motor that doesn’t rely on those tricky, expensive, and geopolitically sensitive rare earth magnets.
Simple Energy’s IPO Plans
This commercial production milestone is a big deal for Simple Energy, especially as the company is gearing up for a public listing. The startup is reportedly planning to launch an Initial Public Offering (IPO) in the second or third quarter of FY27, with the ambitious goal of raising around ₹3,000 crore (approximately $350 million). The funds from the IPO are intended to be used for expanding their manufacturing capacity, boosting R&D, and aggressively growing their retail and service network across India. This move signals that the company is not just focusing on technology but also on building a strong, pan-India brand with a solid financial foundation.
So, what does this actually mean for the auto industry? Well, it’s a massive deal. Most EV motors today, whether it’s for cars or two-wheelers, use permanent magnets that are made with rare earth elements like Neodymium and Dysprosium. The problem? China has a near-monopoly on the supply of these minerals, controlling over 90% of the market. This makes the entire global auto industry vulnerable to supply chain disruptions and price volatility. We’ve seen this recently with China’s export curbs on these magnets, which have put Indian automakers on edge. You can read more about it here.
By developing a rare-earth-free motor, Simple Energy is essentially building a shield against this dependence. They’ve patented a new motor architecture that uses optimized compounds instead of the usual rare earth magnets, and they’ve got their own in-house algorithms to manage heat and torque. This innovation means they can produce motors with similar performance and torque as conventional ones, but without the geopolitical headache. It’s a huge step towards strategic independence and a more stable, secure supply chain for India’s EV sector.
Is this something that can be used across the entire auto industry? The short answer is yes, but it’s a work in progress. While rare-earth-free motors have been a topic of research for a while, Simple Energy is one of the few to move from concept to mass production. They’re already rolling these motors out from their facility in Hosur, Tamil Nadu. Other companies are also exploring similar technologies. For instance, global players like BMW have been developing their own rare-earth-free e-drives. In India, Sterling Tools has also partnered with a UK company to manufacture similar motors. This shows that the technology is viable and is becoming a crucial focus for automakers looking to de-risk their supply chains and embrace more sustainable, localized solutions.
Earlier, Ola Electric claimed to have developed rare earth free motors.
All in all, this move by Simple Energy is a huge win for the Indian EV ecosystem. It not only positions them as a technological leader but also paves the way for a more self-reliant and resilient auto industry in the country. This could very well be the start of a major shift away from a global dependency on rare earths.
If we just talk about EV startups, there are many such startups mushrooming across India. RapteeHV is one such Chennai based startup which is taking the EV 2 wheeler game to a all new level, making India’s first high performance EV motorcycle.
