Ather Energy Phases Out Heavy Rare Earth Elements from EV Motors to Mitigate Supply Chain Risks

Ather Energy, an Indian electric two-wheeler manufacturer, has decided to eliminate the use of heavy rare earth elements in its EV motors to reduce supply chain risks. The company cited global shortages and export restrictions as the primary reasons for this decision. Ather Energy will transition to light rare earth elements, which are more abundant and face fewer geopolitical risks.

Key Takeaways:

• Ather Energy will completely eliminate the use of heavy rare earth elements in its motor systems within the next 45 days.
• The company will replace heavy rare earth elements with light rare earth elements, such as neodymium and praseodymium, which are more abundant and face fewer supply chain risks.
• Ather Energy's motors will continue to utilize light rare earth elements, which will not compromise performance or efficiency.
• The company's CTO, Swapnil Jain, explained that internal testing showed that Ather's motors never reached temperatures that justified the use of heavy rare earths.
• Ather Energy will focus on software as a key differentiator and revenue stream, with plans to introduce new software features and charging stations.
• The company's new factory will increase total installed capacity to 1.42 million E2Ws per year, up from the current 420,000 E2Ws and 380,000 battery packs.

Statistics:

• Ather Energy's installed capacity will rise to 1.42 million E2Ws per year after the new factory goes live.
• The company's revenue per scooter fell by 12% in FY25 due to subsidy cuts, not the mass-market positioning of its affordable family scooter Rizta.
• Heavy rare earth magnets can withstand higher operating temperatures (up to 150°C) compared to light rare earths (120-130°C).
• Ather Energy's next-generation EL platform is expected to be launched in the festive season of 2026.
• The company's new production facility will increase installed capacity and allow for a higher volume of production.

Sources:

• FE ( Financial Express)
• Contify.com
• Ather Energy
• IE Online Media Services Pvt. Ltd. 2025