Vimag Labs Secures $5M from Accel to Scale Rare Earth-Free EV Motor Technology

Key Takeaways

1. Bengaluru-based deep-tech startup Vimag Labs raised $5 million in a funding round led by Accel Partners, with participation from Chakra Growth Fund and Thinkuvate​.
2. Magnet-free motor technology uses advanced electronics and software to generate magnetic fields electronically, eliminating dependence on rare earth elements that create supply chain volatility.
3. Technology maturity: At Technology Readiness Level (TRL) 7 with real-world vehicle testing underway; already commercializing parts of electronics stack and partnering with major OEMs in India and overseas​.
4. Market focus: Initial commercialization targets two- and three-wheeler electric vehicles, with expansion plans for industrial machines, HVAC systems, refrigeration, and defence applications.

Quick Recap

Vimag Labs announced it has raised $5 million in a funding round led by Accel Partners to accelerate commercialization of its patented virtual magnet synchronous motor platform. The round also includes participation from Chakra Growth Fund and Thinkuvate. The Bengaluru-based startup, co-founded in September 2025 by Manish Seth and Piyush Desai, is developing transformative magnet-free electric motor technology designed to reduce the EV industry’s reliance on rare earth metals.

Virtual Magnet Technology: A Software-Defined Solution to Rare Earth Dependency

Vimag Labs’ core innovation centers on its virtual magnet synchronous motor platform, a software-defined approach that replaces permanent magnets with advanced power electronics and control systems. Rather than relying on rare earth magnets to generate the magnetic field needed for motor operation, Vimag’s architecture uses sophisticated algorithms and electronics to electronically create these fields inside the motor.

This breakthrough addresses a critical pain point in global electric vehicle manufacturing. Rare earth elements, particularly neodymium used in permanent magnet motors, are concentrated in geographically restricted supply chains dominated by a single region. This concentration creates pricing volatility, geopolitical exposure, and supply chain fragility that threatens EV production scaling globally.​

According to Vimag Labs, the technology has reached Technology Readiness Level 7, meaning it is undergoing real-world vehicle testing and validation. The startup has already begun commercializing portions of its electronics stack and is working with multiple large original equipment manufacturers (OEMs) in India and internationally. The solution is engineered as a plug-and-play, drop-in system that requires no major modifications to existing vehicle platforms or manufacturing processes—a critical advantage for OEM adoption.​

The capital infusion will accelerate commercialization of the virtual magnet platform, expand engineering capabilities, and scale manufacturing operations. Vimag Labs is initially focusing on two- and three-wheeler electric vehicles for near-term commercialization, with additional applications in HVAC systems, refrigeration equipment, industrial machinery, and defense applications on the roadmap.

The Rare Earth Bottleneck and Competitive Innovation

The timing of Vimag Labs’ funding reflects accelerating investor interest in technologies that circumvent rare earth dependencies. Rare earth elements are embedded throughout EV supply chains—a typical passenger EV motor consumes significant quantities of neodymium and dysprosium, creating cascading cost and supply risk. With global EV adoption accelerating and rare earth extraction concentrated in a handful of regions, automotive manufacturers and suppliers are actively exploring alternatives.​

This shift is not merely academic. Incumbent automotive suppliers including Valeo and Mahle have partnered to develop magnet-free axle systems targeting upper-segment vehicles with peak power outputs of 220–350 kW, aiming to reduce carbon footprint by over 40% compared to conventional permanent magnet motors. Similarly, Advanced Electric Machines (AEM), a UK-based competitor, has secured seven-figure contracts with global automotive suppliers and demonstrated its Super Speed Reluctance Drive (SSRD) technology achieving 308 kW peak power at 30,000 rpm using only aluminum coils and abundant materials.

Vimag Labs enters this emerging market at an inflection point—when magnet-free motor solutions are transitioning from research prototypes to commercialization with real OEM partnerships. The capital raise signals investor confidence that rare earth-free motor architectures represent a genuine technological shift, not just incremental optimization.

Competitive Landscape & Comparison

Vimag Labs differentiates on deployment flexibility through its plug-and-play architecture, making adoption easier for emerging market OEMs in two- and three-wheeler segments where manufacturing constraints are tighter. AEM leads on material sustainability and proven high-speed performance (30,000 rpm), backed by a longer operating history and international patent portfolio. Valeo-Mahle targets the premium segment with advanced thermal management and power electronics integration, aiming for efficiency leadership in high-power applications (220–350 kW). Vimag’s early-stage status and domestic OEM focus position it competitively in India’s rapidly growing EV two-wheeler and auto-rickshaw markets, where cost sensitivity and manufacturing flexibility are paramount.

Sci-Tech Today’s Takeaway

In my experience covering deep-tech funding, this round signals something important: investor capital is flowing decisively toward technologies that solve structural supply chain problems, not just incremental performance gains. Rare earth dependency isn’t a minor constraint, it’s a bottleneck that has already forced automakers to absorb price volatility and geopolitical exposure for years.

What makes Vimag Labs bullish in my view is not just the technology, but the commercialization strategy. Focusing first on two- and three-wheeler EVs is tactically smart. These segments have fragmented, cost-sensitive OEM bases that lack the engineering resources for major platform redesigns. A plug-and-play motor that works without retooling manufacturing lines removes the adoption friction that has historically delayed alternative motor technologies.

I think this is a big deal because it puts the rare earth supply chain on notice. If Vimag Labs, AEM, Valeo-Mahle, and others successfully scale magnet-free motors into volume production by 2027–2028, it fundamentally reshapes the EV supply chain economics. That’s not just beneficial for environmental sustainability but, it’s good for user adoption because it reduces the material-cost volatility that currently flows through to vehicle pricing.

That said, I generally prefer to see proof at scale before overweighting early-stage claims. Vimag has TRL 7 validation and OEM partnerships, which is credible, but the gap between field-tested prototypes and mass production is where many promising motor technologies have stumbled. Watch whether the company reaches production milestones with its OEM partners and whether real-world efficiency metrics match lab claims. Until then, this is a well-capitalized bet on an important problem, not yet a solved problem. But the direction is unmistakably right.