Powerful Pivot: Rare Earth Squeeze Spurs Godrej’s Shift to Rare-Earth-Free Motors – A Gamechanger in EV Future

By EV Update IndiaJun 20, 2025

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🚗 Rare-Earth-Free Motors: Godrej’s Strategic Shift to Power the EV Revolution
🌍 Why Rare-Earth-Free Motors Matter in Today’s Global Landscape
🛠️ Godrej’s Technology Strategy: Advanced Alternatives to Rare Earths
🧪 R&D and New Capacity for Rare-Earth-Free Motors
♻️ Sustainability: More Than Just Motors
📈 Growth Vision: Rs 1,000 Cr by FY28
🔧 From Heritage to High-Tech: Godrej’s Legacy Meets the Electric Era

🚗 Rare-Earth-Free Motors: Godrej’s Strategic Shift to Power the EV Revolution

Rare-earth-free motors are fast becoming the cornerstone of sustainable electric mobility. With rising global demand and rare earth supply disruptions from China, Indian manufacturing giant Godrej is making a bold, future-ready move. The company’s Motor Solutions division has now firmly set its sights on innovation by developing rare-earth-free motors that meet performance standards while reducing dependence on vulnerable imports.

🌍 Why Rare-Earth-Free Motors Matter in Today’s Global Landscape

Rare earth magnets are crucial for the high-efficiency motors used in electric vehicles (EVs). However, with China imposing export restrictions, automakers around the world—including Indian giants like Maruti Suzuki and Tata Motors—are scrambling for alternatives. As the EV industry braces for a potential supply crunch starting mid-July 2025, rare-earth-free motors have emerged as a viable, sustainable solution.

Godrej’s move to invest in rare-earth-free motor R&D couldn’t be timelier.

🛠️ Godrej’s Technology Strategy: Advanced Alternatives to Rare Earths

In response to the rare earth squeeze, Godrej is accelerating the development of:

Switched reluctance motors (SRM)
Synchronous reluctance motors (SynRM)

Both technologies deliver comparable efficiency to traditional motors while using fewer or no rare earth materials. These rare-earth-free motors are crucial for sectors like EVs, automation, HVAC systems, and aerospace, which are all vulnerable to rare earth shortages.

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🧪 R&D and New Capacity for Rare-Earth-Free Motors

Godrej’s Shindewadi facility near Pune is at the heart of this transformation:

6 million units/year capacity
300+ customized SKUs
New EV motor assembly line
Precision lamination punching from AIDA Japan

This facility supports domestic needs and caters to high-growth markets in the US and Europe. Already, Godrej is supplying assembled motors to off-road EVs in the US and is preparing to meet demands of a German automotive customer.

♻️ Sustainability: More Than Just Motors

Rare-earth-free motors aren’t just about avoiding import risks—they’re also about reducing environmental impact.

Godrej’s Shindewadi plant is:

IGBC Platinum and GreenCo Platinum Plus certified
Water-positive
Zero-waste-to-landfill
80% packaging waste recycled
Supplied within 100-km radius for minimal logistics footprint

This commitment ensures that its rare-earth-free motors align with global ESG goals.

📈 Growth Vision: Rs 1,000 Cr by FY28

Godrej has set an ambitious revenue target of Rs 1,000 crore by FY28, with 20% from exports. The rare-earth-free motor initiative is key to achieving this milestone, especially as demand for sustainable mobility solutions increases worldwide.

Xercsis Marker, EVP & Head of Motor Solutions, noted:

“We are investing significantly in R&D and advanced motor technologies to expand our EV footprint while actively reducing dependence on rare-earth materials.”

🔧 From Heritage to High-Tech: Godrej’s Legacy Meets the Electric Era

From manufacturing India’s first refrigerators to becoming a dominant player in motor solutions, Godrej has always been a pioneer. Now, its foray into rare-earth-free motors is not only a response to global constraints but a proactive leap toward sustainable leadership in the electric vehicle revolution.