Modal Motors Bets on Rare-Earth-Free Motors Built in the U.S.
Modal Motors is developing electric motors with no rare-earth magnets, aiming to separate U.S. motor production from China's supply chain. TechCrunch
The startup was founded by Michael Van Steenburg. He spent the last decade building electric motors in the U.S. and North America before starting the company. Modal Motors was selected as a Startup Battlefield 200 company to compete at TechCrunch Disrupt, a profile published Sept. 23, 2026 detailed. TechCrunch
The company is starting with two products. The first is a small electric motor for drones that can also work in fans, blowers and actuators. The second is the Hybrid Enigma Drive, a flat, planar motor designed to fit in thin spaces where a normal motor will not fit. TechCrunch
Transverse flux, modular packaging
Modal Motors says it uses a patent-pending Transverse Flux Motor (TFM) architecture, a layout that directs magnetic force sideways to get more turning power from a smaller size. The company lists Detroit, Michigan as its location and describes a USA-and-allied supply chain, stated on its site as 100% USA-and-allied.
Two product ideas sit on that base. The first is Modular Motor 01, described as having three coils and zero dead weight, meaning no unused material. The second is the Hybrid Enigma Drive, described as one motor with multiple inputs and outputs.
On paper, the portfolio covers non-rare-earth and U.S.-sourced rare-earth electric motors and generators built in the USA, optimized for UAVs, pumps, fans and blowers. The company also lists non-rare-earth hub motors, drone propulsion systems and robotic actuators. Automotive World
Modal Motors claims its U.S.-made motors outperform Chinese rare-earth motors at the lowest COGS in class, COGS meaning the factory cost to build each unit. It also claims the highest torque density, or turning power for its weight, and efficiency. It states its motors are third-party validated. It cites 35+ years of experience in advanced technology and automotive, $50M in previous OEM motor R&D, and 25+ issued patents as the basis for those claims.
In my view, engineers will read those claims as targets to test, not test results. Torque density, efficiency and COGS in class all depend on duty cycle, or how hard the motor works over time, plus heat limits, drive electronics and factory yield. Third-party validation helps, but only when test conditions, tools and baselines are public.
Order books open for Group 2 UAV motor
The OR3627-900kV is the unit now on order. Modal Motors opened order books for the motor in early June, with deliveries scheduled to begin in Q4 2026. Charged EVs
The OR3627-900kV is described as a non-rare-earth propulsion motor for Group 2 UAVs, or mid-size drones. The target is Group 2 UAVs. Deliveries are scheduled for Q4 2026.
Modal Motors raised US$2 million to fund motor production, reported in November 2025. Automotive World
The broader context here is why drones come first and what that funding allows. Drone volumes are lower than cars, airframe makers will accept a new shape if thrust-to-weight and heat performance hold, and defense and commercial buyers now ask where magnets come from. That $2 million covers tooling, low-rate production and customer samples. It does not cover large-scale magnetics or power electronics factories.
Why decoupling resonates now
Modal Motors is not alone in trying to reduce rare-earth exposure. Toyota Motor Corp. readied electric motors using as much as 50 percent less rare earths, work reported in 2018. Bloomberg
The world's largest EV maker said it had cut heavy rare earths by 25% per vehicle and aimed to go rare-earth free, reported in November 2023. Reuters At least three Chinese rare-earth magnet producers were granted export licenses to accelerate shipments, reported in December 2025. Bloomberg
The broader context here is supply risk management, not just motor physics. When export licenses can slow magnet flow, even a motor with slightly lower peak efficiency becomes attractive if its parts list is sourced in the USA and allied countries and its pricing is predictable.
In my view, the questions to ask Modal Motors at Disrupt are direct and technical. What steady turning power and efficiency does the TFM hold at normal heat levels. How does the flat Hybrid Enigma Drive cool under steady load. What inverter, or power electronics box, does it expect customers to use, and what does full system efficiency look like, not just the motor alone. Procurement teams should also ask for the allied supply chain broken down by part and for test data from independent test stands. If those answers hold, the upside goes past drones. Fans, blowers, pumps and actuators ship in high volumes where a flat, rare-earth-free motor with competitive factory cost could simplify buying. That is a long test road, and car traction motors take longer still, but a shippable drone motor is a solid way to gain flight hours before moving to larger uses.
