Indian automotive component maker enters EV motor production through technology licensing agreement, addressing rare earth magnet supply chain concerns
14 May 2025 | 496 Views | By Angitha Suresh
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 partnership, announced on May 14, 2025, will enable Sterling's subsidiary Sterling Gtake (SGEM) to produce these motors at its Faridabad plant.
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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 partnership, announced on May 14, 2025, will enable Sterling's subsidiary Sterling Gtake (SGEM) to produce these motors at its Faridabad plant.
The agreement aims to offer an alternative to the China-dependent permanent magnet supply chain while delivering motors with competitive performance characteristics. Sterling Tools plans to serve all segments of India's traction motors market, which is projected to reach approximately Rs 15,000 crore by 2030.
The partnership also includes plans for joint development of integrated motor and controller solutions, expanding Sterling's offerings beyond its current position as a market leader in Motor Control Units.
"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."
Dr. James Widmer, Co-Founder and CEO of Advanced Electric Machines, noted that the partnership would bring AEM's expertise in magnet-free motors to Indian customers across various vehicle categories. "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," he said.
The domestic production of these motors aligns with India's Atmanirbhar Bharat (self-reliant India) vision and supports the Make in India initiative by reducing dependence on imported components. This move is expected to strengthen the local supply chain for electric vehicle components.
Sterling Tools Limited, established in 1979, has historically manufactured high tensile cold forged automotive fasteners for various vehicle segments. The company has been expanding into electric vehicle components through its subsidiary to create value for stakeholders.
Advanced Electric Machines, founded in 2017 as a spin-off from Newcastle University's electric motor research team, focuses on designing sustainable EV motors. The company holds 46 international patents protecting its motor designs and manufacturing processes.
The global electric vehicle market has been facing challenges related to the supply of rare earth magnets, which are critical components in conventional EV motors. China currently dominates the global supply chain for these materials, creating potential vulnerabilities for manufacturers worldwide. This partnership represents a strategic move to develop alternative technologies that can reduce this dependency.