AEM gains additional development partner for rare-earth-free electric motors

AEM has not disclosed the names of its collaboration partners. However, the UK-based company has secured a seven-figure development contract from a globally operating Tier 1 automotive supplier. Additionally, AEM has entered into a separate agreement with a major Asian automotive manufacturer. According to AEM, both agreements focus on developing distinct technologies for electric motors intended for passenger cars. Following these deals, AEM aims to expand its presence in the European market, particularly in Germany, to increasingly offer motors that do not rely on rare earth elements.

As early as October, AEM announced a finalised development agreement with ‘one of the world’s largest automotive suppliers,’ valued at a seven-figure sum. It is likely, therefore, that only the contract with the Asian OEM is new. With this partner, AEM plans to explore whether another electric motor innovation can be integrated into future vehicles. “At its core, the aim is to replace conventional copper windings with compressed aluminium,” AEM explains. The reason: like rare earth elements, global copper processing is heavily concentrated in just a few regions.

“Automotive manufacturers are actively seeking technologies to reduce their dependence on highly concentrated supply chains. Our aluminium motor technology directly addresses this challenge while simultaneously improving performance and sustainability,” commented AEM co-founder and CEO James Widmer.

AEM, founded in 2017 as a spin-off from Newcastle University, specialises in electric motors that do not require magnets and, consequently, no rare earth elements. The drivetrains of many electric vehicles contain critical raw materials such as neodymium or dysprosium, whereas AEM’s electric units are designed to be manufactured exclusively from unproblematic, recyclable, and readily available materials like steel or aluminium. However, the company has not disclosed the operating principle behind its electric motors. While asynchronous motors and externally excited synchronous motors (such as those from BMW) are also free of permanent magnets and rare earth elements, they still rely on copper. AEM, however, aims to eliminate this material as well.

What is clear: AEM’s latest electric motor, the SSRD (Super Speed Reluctance Drive), is tailored for use in passenger cars and is expected to enter series production by the end of the decade, thanks to the new partnerships. In a recent interview with the British media outlet The Times, Widmer struck a confident tone: “We have millions of kilometres of use on our motors, which has proven that the technology works without the magnets, these rare earths […] We have queues of global manufacturers, car manufacturers and others lining up now to come and work with us and to see if they can put our technology in their future vehicles.”

In recent years, however, AEM has faced financial challenges. In 2022, its turnover amounted to £5 million, but the following year, it dropped to £2.2 million, equivalent to around €2.5 million. In 2024, it rose slightly to £2.9 million (approximately €3.3 million), yet the company recorded a significantly higher loss of £8.3 million, or about €9.6 million. This was partly due to the collapse of one of its main customers, Tevva Electric Trucks, which forced AEM to write off inventory.

Source: Information via email (in German)