Sterling Tools Partners with UK Firm to make Rare Earth Magnet-Free EV Motors – EQ
In Short : Sterling Tools Ltd, via its subsidiary SGEM, has partnered with UK’s Advanced Electric Machines to manufacture rare earth magnet-free EV motors in India. The motors will be produced at SGEM’s Faridabad facility, reducing dependence on imports. This initiative aligns with India’s ‘Make in India’ vision, promoting sustainable mobility and supporting the projected ₹15,000 crore traction motor market by 2030.
In Detail : Automotive component manufacturer Sterling Tools has partnered with the UK-based Advanced Electric Machines (AEM) to produce rare earth magnet-free traction motors for electric vehicles (EVs) in India. This initiative aims to reduce reliance on imports from China, which currently dominates the global market for rare earth magnets.
Sterling Tools announced on Wednesday that the motors will be manufactured at its Faridabad facility through its subsidiary, Sterling Gtake. “The patented AEM technology will enable Sterling Gtake to offer customers magnet-free motors that offer market-leading performance without any weight or size penalty,” the company said in a statement.
The announcement comes amid China’s recent restrictions on the export of rare earth elements and magnets, introduced in April. These restrictions were reportedly in response to trade tariffs imposed by the U.S., and have raised concerns over potential disruptions in global supply chains—particularly in the automotive, defense, and energy sectors where such materials are critical.
“By introducing a mature and commercially viable rare earth magnet-free technology, Sterling Gtake will offer its customers an alternative to the China dependent permanent magnet supply chain,” the company said.
Under the licensing agreement with AEM, Sterling Tools aims to serve all segments of the traction motor market, which is projected to grow to ₹15,000 crore by 2030. The agreement also includes plans for jointly developing integrated motor and controller solutions.
“The diversification into Rare Earth Magnet-Free motors is in line with Sterling’s ambition to develop Powertrain expertise to serve the Indian Auto Industry,” said Anil Aggarwal, Chairman, Sterling Tools. He said the company further plans to expand the local manufacturing of EV solutions and strengthen India’s industrial supply chain.
“With the EV market poised for significant growth, this partnership is well-timed to capitalize on emerging opportunities while contributing to a sustainable future,” he said.
AEM CEO James Widmer also expressed enthusiasm about the partnership. “India’s automotive and zero-emission manufacturing market offers immense potential for growth and innovation. Through our partnership with Sterling Tools, we are bringing our proven expertise in magnet-free motors to Indian customers across a wide range of vehicle categories.”
