Varroc Engineering has updated its litigation status regarding a EUR 67 million claim against OP Mobility. The company’s Romania subsidiary withdrew pending appeal proceedings to commence fresh legal action before the Paris Commercial Court.

Procedural update

The disclosure, made under Regulation 30 of the SEBI LODR Regulations on August 28, 2026, clarifies that Varroc Electronics Romania S.R.L. ("VeR") initiated steps for withdrawal from earlier appeal proceedings. VeR has now commenced fresh proceedings against OP Mobility and certain of its subsidiaries arising out of the same supply agreement.

The matters are currently at a preliminary stage, with notices in the process of being served on OP Mobility. The financial implications will be determined based on the outcome of these ongoing proceedings.

This filing supersedes earlier disclosures dated July 8, 2025, and March 20, 2026, regarding the dispute. The company stated that any further developments will be informed to the stock exchanges from time to time.

Varroc Engineering is developing an electric vehicle motor that does not use rare earth materials, a move aimed at reducing dependence on China, according to a report by Nikkei.

Rare earth-free motor development

The initiative reflects a broader industry push to secure supply chains for critical EV components by eliminating reliance on rare earth elements, which are predominantly sourced from China. Varroc Engineering's effort to engineer a motor without these materials positions the company within a growing segment of manufacturers seeking alternative technologies for electric drivetrains.

Rare earth materials are commonly used in the permanent magnets found in conventional EV motors. Developing motors that function without these elements is considered technically challenging, and companies pursuing this path are working to address both supply chain vulnerability and cost considerations linked to rare earth procurement.