IIT Delhi and Global Auto Giants Seek Alternatives to China’s Rare Earth Dominance

New Delhi — China’s tightening grip on rare earth exports has sparked a worldwide race to develop rare-earth-free electric vehicle (EV) motors, with the Indian Institute of Technology (IIT) Delhi joining leading automakers in pioneering alternative technologies, according to a recent European Times report.

The report noted that China’s latest export curbs are seen as an attempt to “hold the world at ransom,” prompting major automobile manufacturers in the US, Germany, Japan, and India to invest heavily in next-generation EV technologies that rely less—or not at all—on rare earth elements.

In India, IIT Delhi is spearheading efforts to design motors that minimize or eliminate the use of rare earth materials, such as neodymium and dysprosium, which are vital components of permanent magnet motors.

Globally, automakers like Tesla, BMW, General Motors, BorgWarner, Jaguar Land Rover, ZF, Vitesco, Renault, Nissan, Mercedes-Benz, Toyota, and Bentley are developing EVs that either use fewer rare earths or none at all.

Tesla has already reduced heavy rare earth usage by 25 per cent per vehicle, while BMW and others are advancing magnet-free motor designs. Mercedes-Benz, the report said, has nearly eliminated heavy rare earths from its next-generation EV lineup.

Beijing’s latest restrictions, imposed on October 9, followed similar moves in 2018 and 2023, creating disruptions in the global supply of rare earths and raising concerns over geopolitical and supply-chain vulnerabilities.

Earlier in April 2025, after US President Donald Trump announced new tariffs on Chinese imports, China retaliated with export controls on heavy rare earth materials, impacting several nations, including India, and posing challenges for its growing EV industry.

China, which controls about 50 per cent of the world’s rare earth reserves, has been accused of leveraging its dominance to gain strategic advantage over other nations.

Although Beijing eased its restrictions on rare earth magnet exports to India in August, the report said that as of September 9, not a single import application from Indian companies had been approved.

With inputs from IANS