The energy transition has a rare earth problem: These startups are solving it

A startup in northeastern England is pioneering electric motors that do not rely on rare earth metals, addressing a critical challenge in the global energy transition. Advanced Electric Machines (AEM), founded by former aerospace engineer James Widmer, is developing new motor technology that eliminates the need for rare earths—17 metals essential for the high-performance permanent magnets used in most electric vehicle (EV) motors. This innovation aims to reduce dependency on these metals, which are predominantly controlled by China, and to mitigate supply chain vulnerabilities exposed by recent geopolitical tensions. China currently dominates over 90% of the global rare earth separation and refining capacity, as well as nearly all production of permanent magnets. This concentration has raised concerns among Western governments, especially after China imposed export restrictions in response to US tariffs, causing shortages for automakers and highlighting the geopolitical risks tied to rare earth supply chains. AEM’s approach offers a strategic alternative by designing motors that avoid rare earths altogether, potentially easing pressure on mining and refining industries while reducing the environmental impact associated with extracting these metals. Widmer compares the reliance on rare earths in EV motors to the historical use of leaded gasoline—a solution once considered convenient but ultimately harmful and unnecessary. By developing rare earth-free motors, AEM and similar startups are not only seeking to diversify supply chains but also to advance more sustainable manufacturing practices. This shift could have significant implications for the automotive and renewable energy sectors, which depend heavily on these materials for electric vehicles and wind turbines. The push to eliminate rare earths from motor technology aligns with broader efforts to secure critical materials for the clean energy transition. As demand for EVs and other green technologies grows, reducing reliance on concentrated supply chains is increasingly vital to ensuring stable, ethical, and environmentally responsible production. AEM’s work represents a promising step toward more resilient and sustainable energy infrastructure worldwide.