Cutting China Out of Electric Motors: A Strategic Shift in U.S. Tech Manufacturing

Introduction: The Urgency of Supply Chain Resilience

As global markets grapple with geopolitical tensions and supply chain disruptions, American startups are increasingly focusing on strategies that reduce foreign dependency. One such initiative comes from Modal Motors, a new company led by Michael Van Steenburg, who spent over a decade developing electric motors in North America before launching his latest venture.

Van Steenburg's mission is ambitious yet timely: to create an entirely domestic supply chain for small, lightweight electric motors used in drones, fans, and robots — without relying on rare-earth magnets. This approach directly challenges the long-standing dominance of China in this sector.

"China's already flexed its muscles a couple times," Van Steenburg said, referencing recent export restrictions on rare-earth materials to the U.S., which highlight vulnerabilities in current supply chains.

Why Rare Earth Magnets Matter

Rare-earth magnets are essential components in many modern electric motors due to their superior magnetic properties. However, China controls over 90% of global rare-earth production, giving it significant leverage over industries that depend on these materials.

This dependency has become a strategic liability, especially as the U.S. government pushes for reshoring manufacturing and reducing reliance on foreign suppliers. Other companies attempting to rescale motor production in the U.S. are still using traditional rare-earth magnet designs, hoping that domestic supply chains will catch up — but this is likely years away.

Modal Motors' Innovation: A New Paradigm

Modal Motors takes a different path. By designing motors without rare-earth magnets, the company aims to break free from China's grip on this critical material. The company has developed two key products:

• Standard Small Motor: Optimized for drones, fans, blowers, and actuators, with a focus on maximizing torque density and efficiency while minimizing mass.
• Hybrid Enigma Drive: A planar motor that fits into lower-profile spaces, offering greater versatility in compact applications.

These designs reflect years of experience in automotive engineering and demonstrate how innovation can be applied across sectors to address persistent supply chain issues.

The Strategic Context: Reshoring vs. Reimagining

Many startups are currently engaged in the effort to reshape manufacturing within the U.S., but they often follow outdated models — essentially copying Chinese designs and replicating them domestically. Van Steenburg argues that this approach is flawed because it does not solve the root problem: dependency on rare-earth resources.

"Other people are 'reshoring,' [but] they're basically knocking off Chinese motors and just doing it in the U.S. But they're hoping that the U.S. rare-earth magnet system is going to get up to speed fast enough," he explained.

The real question, according to Van Steenburg, is whether the U.S. can truly achieve self-sufficiency in rare-earth materials within a reasonable timeframe — and if not, then it's essential to find alternative designs that don't rely on those materials at all.

Historical Parallels: From Hybrid Cars to Modern Motors

Van Steenburg's journey into electric motor development is deeply rooted in his past work in automotive technology. In the late 1990s, he was involved in developing hybrid gas-electric drivetrains for what became known as China's "People's Car." That early project was a testament to his long-standing belief in innovation that challenges conventional thinking.

"It's kind of comical," Van Steenburg remarked when reflecting on how much the world has changed since then, especially given how deeply embedded rare-earth dependencies are in today's tech landscape.

This historical context provides valuable perspective: what started as a strategic collaboration with a global power is now being reframed as an opportunity to build resilience in U.S. manufacturing capabilities.

Geopolitical Implications of Domestic Manufacturing

The push toward domestic production isn't merely about economic strategy — it's also deeply tied to national security. As countries around the world begin to see the strategic value of controlling critical materials, there is growing pressure on American firms to develop independent supply chains.

Van Steenburg sees this as more than a business opportunity; it's a necessary evolution in how the U.S. thinks about high-tech manufacturing. His view echoes broader concerns raised by policymakers and defense analysts who warn of future conflicts involving access to strategic materials.

"I always tell people that the clock started ticking 25 years ago, and in that whole time, I've watched a slow-motion train wreck as China's been going around the world, grabbing mines, grabbing mineral rights, doing all these things, and slowly but surely monopolizing the entire rare-earth supply chain," he noted.

Looking Ahead: The Road to Market Readiness

Modal Motors is entering the TechCrunch Disrupt competition as part of Startup Battlefield 200, a platform that showcases emerging technologies with real-world impact. The company's presentation at the event will offer insight into how its innovative motor designs could revolutionize robotics and automation — all while challenging long-standing dependencies on Chinese-made components.

The startup's approach represents more than just another tech startup; it's a case study in how strategic thinking, combined with practical innovation, can reframe supply chain dynamics. For those who understand the risks of geopolitical dependency, Modal Motors may represent a new chapter in American industrial resilience.

Conclusion: Redefining Manufacturing for the Future

The story of Modal Motors underscores a larger trend: the need to innovate not just in product design but in supply chain strategy. By removing reliance on rare-earth magnets, the company is tackling one of the most pressing challenges facing American manufacturers today.

Whether this will lead to widespread adoption remains to be seen, but for now, it offers a compelling vision of what a more self-reliant and resilient manufacturing base might look like — and why such a shift matters more than ever in our interconnected world.