IPO-bound Simple Energy manufactures India’s first heavy rare earth-free motor

Bengaluru-based EV startup Simple Energy said it has become India's first original equipment manufacturer (OEM) to commercially manufacture heavy rare earth-free motors, a breakthrough that addresses one of the most pressing global supply chain challenges in the EV industry.

The new line of motors has been developed entirely in-house and manufactured at Simple’s 200,000 sq. ft. facility in Hosur, Tamil Nadu. According to a statement, the motor delivers the same performance and torque as conventional motors—without relying on heavy rare earth elements, which are expensive, scarce, and geopolitically sensitive.

“Global supply chain disruptions and material dependencies have made one thing clear: the future of electric mobility must be built on self-reliance,” said Suhas Rajkumar, CEO and Co-founder, Simple Energy. “This patented, in-house technology replaces heavy rare earth magnets with optimised compounds and proprietary algorithms that manage heat and torque in real time.

The move aligns with India’s push for deep localisation in the EV sector. Simple Energy says it has already achieved 95% localisation across its operations.

At the heart of the innovation lies a patented motor architecture designed by Simple’s R&D team.

Traditionally, EV makers have depended on heavy rare earth magnets for their high torque density. But with rising costs and restricted supply, Simple experimented with alternative compounds and control algorithms to replicate performance.

Unlike most players who rely on third-party suppliers, Simple designs and manufactures its motors in-house—allowing faster iterations, better quality control, and quicker go-to-market timelines.

The development comes at a time when global EV makers are under pressure to reduce dependence on critical raw materials.

Founded in 2019 by Suhas Rajkumar and Shreshth Mishra, Simple Energy has raised over $41 million from marquee investors, including Balamurugan Arumugam, Vipul Khanna, Apar Industries’ Desai Family Office, and Dr A Velumani’s family office. The company has expanded to 46 showrooms across major Indian cities.

It now plans to scale aggressively with 150 new stores and 200 service centres by FY25, while preparing for a $350 million IPO in FY27 to fuel product innovation and manufacturing.