UK Startup Secures Major Deals for Rare-Earth-Free EV Motors

Advanced Electric Machines (AEM), a UK-based startup spun out from Newcastle University in 2017, is making waves in the electric vehicle sector with its innovative motor technology. The company recently announced a new development partnership with a major Asian automotive manufacturer, following a seven-figure contract with a global Tier 1 supplier secured last autumn. These deals target distinct technologies for passenger car electric motors, with AEM's Super Speed Reluctance Drive (SSRD) slated for series production by the end of the decade.

At the heart of AEM's approach is the elimination of permanent magnets, which typically rely on scarce rare earth elements such as neodymium and dysprosium. These materials are essential for high-performance EV traction motors because they enable strong magnetic fields, compact designs, and efficient power delivery. However, over 90% of global rare earth processing is controlled by China, creating supply chain vulnerabilities amid export restrictions and geopolitical tensions. AEM's reluctance-based motors use readily available steel and aluminium instead, sidestepping these risks while promising comparable or better performance.

The new Asian OEM collaboration focuses on replacing traditional copper windings with compressed aluminium, further diversifying away from concentrated supply chains—copper refining is similarly dominated by a few regions. AEM CEO James Widmer emphasized that automakers are eager for solutions that enhance sustainability and resilience. 'Our aluminium motor technology directly addresses this challenge while improving performance,' Widmer stated, noting millions of kilometers of real-world testing.

Despite financial hurdles, including losses from a customer's collapse, AEM is expanding into Europe, particularly Germany, where EV production is booming. This move aligns with broader industry efforts to hedge against rare earth dependency, as seen in parallel investments like Cyclic Materials' $75 million raise for recycling EV motor magnets. AEM's progress signals a potential shift: rare-earth-free motors aren't just theoretical but are gaining traction with global players, potentially reshaping automotive electrification by reducing costs, environmental impact, and supply risks.