Modal Motors is developing electric motors that can operate without rare-earth magnets, targeting drones and other systems that currently depend on materials supplied largely through China. Founder Michael Van Steenburg wants the startup to manufacture its motors in the U.S. using a U.S.-and-allied supply chain.
Van Steenburg has spent the past decade building electric motors in the U.S. and North America. Modal Motors is also one of the startups selected for TechCrunch’s 2026 Startup Battlefield 200 and will appear at TechCrunch Disrupt in San Francisco in October.
Modal Motors Develops Two Electric Motor Designs
Modal is currently developing two products, according to its official product information. Its Modular Motor is designed for weight-sensitive applications such as drones, while also supporting pumps, fans and blowers.
The motor uses Modal’s patent-pending transverse flux motor architecture, which the company says is designed to reduce mass while maintaining torque density and efficiency. Customers can choose a version without rare-earth materials or one using rare-earth materials sourced from the U.S. and allied countries.
The company’s second product, the Hybrid Enigma Drive, uses a flat motor design with magnetic gearing. It can combine multiple power inputs, including an internal combustion engine, wind or water, while avoiding physical contact between conventional gears.
Van Steenburg told TechCrunch that he sees reducing dependence on rare-earth magnets as an important part of building a domestic motor supply chain. He argued that simply moving motor assembly to the U.S. would still leave manufacturers dependent on imported magnets.
Rare-Earth Supply Remains a Manufacturing Concern
China remains the dominant supplier across several stages of the global rare-earth industry. Recent restrictions on exports have increased pressure on manufacturers in sectors including automobiles, aerospace, defense and electronics to find alternative materials and suppliers.
Reuters reported that China accounts for as much as 70% of global rare-earth mining and more than 85% of refining and production. Developing alternative supply chains is expected to take years.
Van Steenburg’s experience with electric powertrains dates back decades. In the late 1990s, he worked on a hybrid gas-electric drivetrain intended for a proposed mass-market vehicle in China.
Modal says its motors are designed and manufactured in the U.S. and use materials sourced from the U.S. and allied countries. The startup is now working to prepare its motor designs for customers across aerospace, industrial and other applications.
Featured image credits: Linkedin
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