New Delhi, Oct 22 : China's restrictions on rare earths are driving a global transition to rare-earth-free electric vehicle motors, a recent report said, adding that the Indian Institute of Technology (IIT) Delhi, is also developing such alternative solutions.

"With China out to hold the world at ransom by restricting the supply of rare earths, major automakers in the US, Germany, Japan, and India are developing EVs that do not use rare earths for their batteries,' the report from European Times said.

In India, the IIT, Delhi, is putting efforts into developing motors that require fewer or no rare earth elements, it added.

Globally, auto majors from the US, Europe, and Japan, including Tesla, BMW, General Motors, Borowarner, Jaguar, Land Rover, ZF, Vitesco, Renault, Nissan, Mercedes-Benz, Toyota, and Bentley, are working on rare-earth-free EV models.

Tesla has cut heavy rare earths by 25 per cent per vehicle, while BMW and others are progressing with magnet-free or low-rare-earth designs. Mercedes-Benz has reduced the heavy rare earth content in its next-generation electric vehicles 'close to 0 per cent,' the report said.

Beijing imposed the latest curbs on rare earth elements and related technologies on October 9, following similar measures in 2018 and 2023. These actions have disrupted supplies of neodymium and dysprosium, essential for permanent magnet motors, and increased political and supply-chain risks.

In April 2025, when US President Donald Trump imposed additional tariffs on Chinese products, Beijing imposed export controls on various heavy rare earth materials, directed against the US and other countries, including India, putting the automobile sector in India in difficulty.

China holds half of the world's rare earth deposits, which it uses to "blackmail" other nations, the report said.

Though in August, Beijing withdrew its export restrictions on rare earth magnets to India, till September 9, Indian companies were yet to have a single import application approved, the report said.

/IANS