Modal Motors aims to break China's grip on electric motors by ditching rare-earth magnets

Startup founder Michael Van Steenburg brings decades of automotive experience to the Startup Battlefield 200 with motor designs that avoid rare-earth materials entirely.

By LineZotpaper
Published
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Sources2 outlets
As the push to reshore critical manufacturing accelerates, startup Modal Motors is taking a different approach: building electric motors that don't rely on rare-earth magnets at all. Founder Michael Van Steenburg, who will pitch the company at TechCrunch Disrupt next month as part of the Startup Battlefield 200, argues that current reshoring efforts are doomed until a domestic rare-earth supply chain matures — something he says is years away.

Modal Motors has developed two products ahead of the competition. The first is a small electric motor designed for drones, fans, blowers, and actuators, which the company says "minimizes mass while delivering maximum torque density and efficiency." The second, more radical design, is the "Hybrid Enigma Drive," a planar electric motor that fits into low-profile spaces.

Van Steenburg brings decades of automotive experience to the venture. He spent the last decade building electric motors across the U.S. and North America, and before that, in the late 1990s, worked on a hybrid gas-electric drivetrain that China intended for its so-called "People's Car."

"It's kind of comical," Van Steenburg said, reflecting on how much the world has changed since that collaboration. He now frames his mission as urgent, pointing to recent Chinese restrictions on rare-earth exports. "China's already flexed its muscles a couple times," he said.

Van Steenburg is critical of other reshoring efforts that simply replicate Chinese motor designs and hope domestic rare-earth magnet production catches up. "It's going to still be a while longer before they can actually replace China," he said.

"I always tell people that the clock started ticking 25 years ago, and in that whole time, I've watched a slow-motion train wreck as China's been going around the world... slowly but surely monopolizing the entire rare-earth supply chain," he added.

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Analysis

Why This Matters

  • Strengthening domestic supply chains for electric motors has strategic implications for defense (drones), clean energy, and manufacturing — all sectors where rare-earths are critical.
  • If Modal Motors succeeds, it could offer a path to reduce U.S. reliance on China without waiting for domestic rare-earth mining and processing to scale.
  • The startup's pitch arrives amid rising trade tensions and export controls, making the timing politically and economically significant.

Background

Electric motors are essential to modern industry — powering everything from drones and robots to electric vehicles and HVAC systems. Most high-performance motors rely on rare-earth magnets, which are overwhelmingly processed and supplied by China. In recent years, Beijing has used its dominance as leverage, restricting exports of rare-earth products. U.S. efforts to build alternative supply chains have been slow and expensive, leaving manufacturers dependent on Chinese materials for the foreseeable future.

Key Perspectives

[Founder Michael Van Steenburg]: Believes skipping rare-earths entirely is the only viable near-term path to independence, and that his decades of experience give Modal a genuine edge. [Reshoring competitors]: They argue that replicating proven Chinese motor designs is the fastest route to domestic production, assuming the magnet supply problem will be solved by government investment. [Critics/Skeptics]: Without rare-earth magnets, achieving the same power density and efficiency is notoriously difficult — it's unclear if Modal's designs can compete on performance. The startup has not yet disclosed customer traction or independent test results.

What to Watch

  • TechCrunch Disrupt next month — the quality of Modal's pitch and any early customer or partner announcements.
  • Independent benchmarks or specifications for the Hybrid Enigma Drive compared to rare-earth-based alternatives.
  • Further Chinese export restrictions on rare-earths, which would underscore the urgency of Van Steenburg's thesis.

Sources

Zotpaper

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