Sterling Tools Partners UK’s AEM to Make Rare Earth-Free EV Motors in India

Sterling Tools Limited has signed a technology licensing agreement with UK-based Advanced Electric Machines (AEM) to manufacture rare earth magnet-free traction motors for electric vehicles in India. The agreement, announced on May 14, 2025, will see production kick off at Sterling’s subsidiary Sterling Gtake (SEM) facility in Faridabad.

The collaboration aims to offer a sustainable and competitive alternative to traditional permanent magnet motors, a market that remains largely dependent on China’s supply of rare earth materials. 

India’s traction motors market is projected to reach nearly INR 15,000 crore by 2030, with Sterling targeting participation across all key vehicle segments.

Expanding Beyond Motor Control Units

The partnership will also focus on the joint development of integrated motor and controller solutions, significantly broadening Sterling's base in the EV component ecosystem. The company, which already has a fine presence in Motor-Control Units (MCUs), seeks to evolve into a complete drivetrain solutions provider, the official statement reveals.

"Sterling's foray into rare earth magnet-free motors demonstrates the Group's commitment to being a technology leader and an industry pioneer," said Anil Aggarwal, Chairman of Sterling Tools Limited. "We are expanding beyond MCUs to being a complete solution provider and meeting the EV Industry's growing demand for advanced technology."

Industry Context and Company Backgrounds

The global EV industry has been grappling with challenges tied to supply constraints of rare earth magnets, a material heavily controlled by China. 

James Widmer, Co-Founder and CEO of AEM, emphasized the collaboration’s strategic importance, "Together, we can create high-quality powertrain solutions that cater to India's growing need to reduce its tailpipe emissions, while also supporting the country's self-reliance and sustainability goals."

Sterling Tools, founded in 1979, is traditionally known for producing high tensile cold forged automotive fasteners and has since diversified into EV components through its subsidiary SEM. Meanwhile, AEM, established in 2017 as a Newcastle University spin-off, specializes in designing sustainable EV motors and holds 46 international patents for motor designs and manufacturing processes.