Working principle and market readiness of rare-earth free software-defined motors by Volektra

Volektra, a Sacramento-based electric drivetrain company, recently secured a new funding round led by Chakra Growth Capital to commercialise its rare-earth-free Virtual Magnet motor technology. This interview with Manish Seth – Founder, Volektra, discusses their proprietary tech, its readiness and relevance.

The concept of rare-earth-free motors is not new. What are the main reasons the technology has not been commercialised at scale to date?

You’re right – this isn’t a new idea. However, the real reason it hasn’t scaled primarily stems from performance compromises and cost inefficiencies. Most rare-earth-free alternatives—like induction motors, synchronous reluctance motors, or ferrite-based permanent magnet motors—fail to match PMSMs in key system-level metrics: torque density, dynamic response, size, or efficiency.

Take synchronous reluctance motors. While they’re magnet-free and relatively efficient in steady- state, they deliver low torque density, require complex rotor geometries, and struggle with low- voltage or size-constrained platforms and loss of range due to lower efficiency. They’re fine in high- speed applications with ample space and power (like Tesla’s use case), but they don’t scale down economically or effectively.

Ferrite-based motors try to substitute neodymium with cheaper, low-coercivity materials. However, they still rely on permanent magnets and cannot match the energy product or miniaturisation capabilities of rare-earth magnets. That means more weight, lower range, and less design flexibility.

Then there’s the systemic inertia. OEMs and Tier 1s are risk-averse for good reasons– they’ll pay the rare-earth premium rather than gamble on an architecture that might disrupt production cycles, reliability metrics, or regulatory compliance. The result: entrenched tech, even when the market is hungry for alternatives.

So, despite growing urgency to exit rare-earth dependence, no one has delivered a drop-in, scalable alternative that matches PMSM performance without magnets, without compromise, and without hidden system costs. That’s precisely what we’ve engineered at Volektra with our software-defined motor powered by Virtual Magnets.

What is the relevance of ‘rare-earth elements’ and ‘permanent magnets’ in motor manufacturing?

Rare-earth elements—especially neodymium and dysprosium—are used to make high-performance permanent magnets. These magnets give PMSMs their edge: high torque density, compact size, and excellent efficiency at variable loads. Without them, motors would need to be bigger and heavier for the same output, which is a no-go in many transport and consumer applications.

The problem is that rare-earths are supply-chain risks waiting to happen. They’re geographically concentrated (mainly China), price-volatile, and environmentally toxic to extract. The industry is essentially addicted to a fragile input.

What is your solution to ending the rare-earth dependency of motors?

At Volektra, we’ve developed a proprietary architecture called the Virtual Magnet Motor—essentially a software-defined magnet-free motor that mimics the magnetic behaviour and torque profile of a PMSM, without using any magnets at all. These virtual magnets are created dynamically through software-defined field control, simulating the behaviour of a permanent magnet without the limitations such as thermal management overload, supply chain issues and so on. The result: a motor that performs like a PMSM but contains zero magnets.

What kind of motors are you developing?

We’re developing magnet-free synchronous motors, powered by software-defined field patterns. These motors use what we call Virtual Magnets—magnetic locking effects generated entirely through advanced stator control, eliminating the need for rare-earth materials altogether. This platform is highly modular and designed to scale across:

• Light electric vehicles – e-bikes, cargo bikes, scooters, ATVs

• Automotive systems – including high-voltage traction motors up to 600 kW

• Industrial equipment – such as generators, compressors, and pumps

In parallel, we also offer high-performance PMSM motors and controls, which are already commercially validated and being used by OEM partners for near-term deployments. These are available now and serve as a bridge for customers while we scale our magnet-free platform.

Together, these offerings position us to meet immediate market needs while leading the transition to fully software-defined electric propulsion.

What is the working principle behind these motors?

Our Software-Defined Motor creates a Virtual Magnet effect by wirelessly energizing the rotor. Unlike permanent magnet machines that rely on rare-earth materials, or externally excited systems that need slip rings or mechanical connections, we use a proprietary wireless power transfer method to activate the rotor’s magnetic field.

Once energized, the rotor behaves like it has embedded magnets—without having any. The stator then synchronizes with this field through intelligent control algorithms, this software-defined field locks into the rotor dynamically, it’s fundamentally a magnetic simulation engine embedded in real hardware, using smart algorithms to shape the field in real time delivering the torque and control characteristics of a traditional PMSM.

How do the performance and cost of these motors compare to other popular motors like PMSM, BLDC, or induction motors?

Performance-wise, our Software-Defined Motor delivers torque, responsiveness, and efficiency on par with PMSMs—without using any permanent magnets. Unlike BLDC motors, which suffer from torque ripple and limited efficiency at partial loads, our system maintains smooth operation and optimized energy usage across the duty cycle. Compared to induction motors, we achieve better torque density and lower losses, especially in compact or low-voltage applications where induction machines become bulky and inefficient.

On cost, our architecture eliminates rare earths, and associated thermal, temperature, and safety related issues prevalent with permanent magnet based motors. At system level, this results in:

• Lower BOM cost over time (especially as rare-earth prices remain volatile),

• Lower cooling and shielding requirements,

• Simplified supply chain and recyclability.

What is the current commercial readiness of motors developed by Volektra?

We’re actively advancing multiple programs across mobility and industrial sectors. While specific customer names are under NDA, we can share the following:

• A sub-10 kW Software-Defined Motor is undergoing final validation and is slated for vehiclelevel testing with a 3-wheeler OEM.

• A 250 kW system prototype is currently being developed in collaboration with a major global automotive OEM for high-voltage applications.

• A two-wheeler-specific variant is kicking off shortly with an established OEM partner, focused on urban mobility needs.

• In the industrial sector, we are co-developing a platform with a leading global OEM for refrigeration and cooling applications, targeting sector-specific performance and reliability requirements.

Can you mention any third-party validation received for your tech or successful customer qualifications so far?

Our focus is on direct integration with OEMs and end customers. We have prioritized a validation process that is application centric, and customer driven in real world conditions instead of certificate driven in controlled lab settings.

What sets us apart is the caliber of our team, composed of motor and control experts from Danfoss, ABB, Tesla, and Ford, who bring deep experience in both innovation and scaling. We’ve developed internal validation protocols that match or exceed Tier 1 automotive standards, enabling us to consistently hit OEM qualification milestones faster than most. Additionally, our captive data from tens of thousands of PMSMs deployed in the field provides us with an unmatched benchmark for validating performance, reliability, and control strategy. This gives us the ability to optimize and validate new products based on real-world operational insights – not just lab simulations – which is a significant competitive edge.

This interview was first published in EVreporter May 2025 magazine.

Also read: Ecozen makes a strategic investment in Volektra