Modal Motors is trying to cut China out of electric motors entirely

Electric motor production can proceed without relying on rare-earth magnets and China's supply chain. This removes a critical geopolitical dependency that has historically constrained domestic manufacturing.

Modal Motors, a startup founded by Michael Van Steenburg, is aiming to eliminate China's dominance in the electric motor supply chain. Van Steenburg plans to achieve this by developing electric motors that do not rely on rare-earth magnets, materials that China currently controls a significant portion of globally. This approach contrasts with other companies attempting to reshore manufacturing, which Van Steenburg argues still depend on Chinese rare-earth magnet supply chains that are years away from domestic readiness. Modal Motors is developing two products: a compact motor for drones, fans, and actuators, and a flat "Hybrid Enigma Drive" motor designed for low-profile applications. Van Steenburg, who has a long history in the automotive industry and previously worked on hybrid drivetrains for China, believes his strategy is crucial given China's historical consolidation of rare-earth mineral rights.

Modal Motors' strategy to circumvent rare-earth magnets signals a significant shift in how the electric vehicle and hard tech industries might approach supply chain resilience. By focusing on alternative materials, the company is positioning itself as a more independent alternative to current manufacturing practices. This could spur further innovation in motor design and material science, potentially leading to new performance benchmarks and cost structures.

The implications extend beyond just electric motors, potentially affecting the broader robotics and drone sectors that rely on these components. If successful, Modal Motors could disrupt established supply chains and create new dependencies for companies seeking to de-risk their operations from geopolitical tensions. Investors and manufacturers looking to secure long-term, stable supply chains may find this approach attractive, especially as global trade dynamics remain uncertain.