AEM Signs New Partners for Rare-Earth-Free Motors

UK startup Advanced Electric Machines (AEM) has secured two new development contracts to advance electric motors that avoid rare-earth magnets and aim to cut reliance on concentrated material supply chains.

The company says one agreement is a seven-figure development deal with a globally operating Tier-1 automotive supplier, and the other is with a major Asian automaker; AEM has not named the partners. Both collaborations target distinct motor technologies for passenger cars and support plans to expand presence in Europe, especially Germany.

AEM is exploring replacing conventional copper windings with compressed aluminium to reduce dependence on copper refining, which is geographically concentrated. The firm says its approach uses recyclable, widely available materials such as steel and aluminium and removes permanent magnets from the drivetrain.

Founded in 2017 as a Newcastle University spin-off, AEM has developed the SSRD (Super Speed Reluctance Drive) for passenger vehicles, targeting series production by the end of the decade. The company reports extensive on-road testing but has kept technical operating details private.

Financially, revenue fell from £5m in 2022 to £2.2m in 2023, rising to £2.9m in 2024, while a larger 2024 loss of £8.3m reflected inventory write-offs after a major customer collapse.