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Modal Motors aims to cut China out of electric motors

Modal Motors, a U.S. startup founded by Michael Van Steenburg, is developing electric motors that eliminate the need for rare earth magnets. The company aims to reduce dependence on China’s supply chain and will compete in TechCrunch Disrupt as part of Startup Battlefield 200.

LA

LazyFounders

·5 min read
Modal Motors aims to cut China out of electric motors
Image: Image Credits:Modal Motors via TechCrunch

Modal Motors, a U.S. startup founded by Michael Van Steenburg, is developing electric motors that eliminate the need for rare earth magnets. The company aims to reduce dependence on China’s supply chain and will compete in TechCrunch Disrupt as part of Startup Battlefield 200.

30 SEC SUMMARY

  • Modal Motors, a U.S.-based startup, is developing electric motors without rare earth magnets to reduce dependence on China’s supply chain.
  • Founder Michael Van Steenburg has a decade of experience in building electric motors in the U.S. and North America.
  • The startup will compete in TechCrunch Disrupt as part of Startup Battlefield 200.
  • Modal Motors is working on two products: a drone motor and the 'Hybrid Enigma Drive,' a planar electric motor.
  • Van Steenburg criticizes reshoring efforts that rely on rare earth magnets, citing delays in domestic supply.

TABLE OF CONTENTS

  • Modal Motors’ Mission
  • Founder’s Background and Critique
  • Products in Development
  • TechCrunch Disrupt
  • What this means
  • Key takeaways
  • FAQ
  • Sources

KEY HIGHLIGHTS

  • Modal Motors is developing electric motors without rare earth magnets to reduce U.S. reliance on China’s supply chain.
  • The startup will compete in TechCrunch Disrupt as part of Startup Battlefield 200.
  • Founder Michael Van Steenburg has over a decade of experience building electric motors in the U.S. and North America.
  • Modal Motors is working on a small drone motor and the 'Hybrid Enigma Drive,' a planar electric motor.
  • Van Steenburg argues that reshoring efforts relying on rare earth magnets are premature due to limited domestic supply.

Modal Motors’ Mission

According to TechCrunch, Modal Motors, a U.S.-based startup founded by Michael Van Steenburg, is developing electric motors that do not rely on rare earth magnets. The goal is to reduce dependence on China’s supply chain, which dominates the production of these critical components. Rare earth magnets are widely used in electric motors for drones, automotive applications, and robotics, making their supply a strategic concern for industries and governments.

Founder’s Background and Critique

Michael Van Steenburg, the founder of Modal Motors, has reportedly spent the last decade building electric motors in the U.S. and North America. His experience includes work on a hybrid gas-electric drivetrain in the late 1990s, which, according to TechCrunch, attracted interest from China for its "People’s Car" initiative.

Van Steenburg has been critical of other efforts to reshore electric motor manufacturing, particularly those that continue to rely on rare earth magnets. He argues that domestic supply of these magnets remains years away, making such efforts premature and potentially ineffective in addressing supply chain vulnerabilities.

Products in Development

Modal Motors is currently developing two products. The first is a small electric motor designed for drones, though it could also be used in fans, blowers, and actuators. According to TechCrunch, this motor is engineered to minimize mass while maximizing torque density and efficiency.

The second product, called the Hybrid Enigma Drive, is a planar electric motor. Details about its specific applications remain limited, but such designs are typically used in industries requiring precision and compact form factors, such as robotics or automotive systems.

TechCrunch Disrupt

Modal Motors will compete in TechCrunch Disrupt next month as part of Startup Battlefield 200. The event provides early-stage startups with exposure to investors, media, and industry experts, offering a platform to showcase innovative technologies and business models.

What this means

LazyFounders analysis — our interpretation, not reported fact.

Modal Motors is tackling a critical supply chain vulnerability for the U.S. and its allies: the dependence on China for rare earth magnets, which are essential for electric motors. While other startups and established players are focused on reshoring or securing alternative sources for these materials, Van Steenburg’s approach is more disruptive—eliminating the need for rare earth magnets altogether.

This strategy could mitigate geopolitical risks and long-term supply chain instability, but it also comes with significant technical challenges. Developing viable alternatives to rare earth magnets requires breakthroughs in materials science, engineering, and manufacturing. If successful, Modal Motors could position itself as a key player in industries like drones, automotive, and robotics, where motor performance and efficiency are paramount.

For founders and operators, this story underscores the importance of addressing supply chain risks proactively, especially in industries reliant on critical materials. It also highlights the potential for startups to differentiate themselves by rethinking core technologies, rather than incremental improvements or reliance on existing paradigms.

Key takeaways

  • Modal Motors is aiming to eliminate rare earth magnets from electric motors to reduce U.S. dependence on China.
  • The startup is developing two products: a small motor for drones and the 'Hybrid Enigma Drive,' a planar electric motor.
  • Founder Michael Van Steenburg has a decade of experience in electric motor development in the U.S. and North America.
  • The company will compete in TechCrunch Disrupt as part of Startup Battlefield 200.
  • Van Steenburg criticizes other reshoring efforts for relying on rare earth magnets, whose domestic supply remains years away.

FAQ

Why is Modal Motors avoiding rare earth magnets?

The company aims to reduce U.S. dependence on China, which dominates the supply chain for rare earth magnets. This is a strategic move to address geopolitical and supply chain risks.

What products is Modal Motors developing?

The startup is working on two products: a small electric motor for drones and the Hybrid Enigma Drive, a planar electric motor.

Who founded Modal Motors?

Michael Van Steenburg, an engineer with a decade of experience building electric motors in the U.S. and North America, founded the company.

What is TechCrunch Disrupt?

TechCrunch Disrupt is an annual conference where early-stage startups compete in Startup Battlefield, showcasing their innovations to investors, media, and industry experts.

Why does Van Steenburg criticize other reshoring efforts?

He argues that efforts relying on rare earth magnets are premature because domestic supply of these materials is still years away, failing to address immediate supply chain vulnerabilities.

Related on LazyFounders

Sources

  1. TechCrunch · 2026-09-23
    Modal Motors is trying to cut China out of electric motors entirely

This story is an original summary and analysis written by LazyFounders from the reporting listed above. Facts are attributed to their original publishers; sections marked as analysis are LazyFounders's opinion. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links.

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