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India’s leading automotive component manufacturer, Sterling Tools Limited, has entered into a technology licensing agreement with UK-based Advanced Electric Machines (AEM) to produce rare-earth magnet-free traction motors for electric vehicles. Announced on May 14, 2025, the agreement enables Sterling’s subsidiary, Sterling Gtake (SGEM), to manufacture these motors at its Faridabad facility.
The partnership is designed to provide a technology alternative to the China-dependent permanent magnet supply chain. Sterling Tools aims to cater to the entire Indian traction motor market, which is projected to grow to approximately ₹15,000 crore by 2030.
Under the agreement, both companies will also jointly develop integrated motor and controller solutions. This marks Sterling’s strategic shift from being solely a Motor Control Unit (MCU) supplier to becoming a complete electric vehicle solutions provider.
Anil Aggarwal, Chairman of Sterling Tools Limited, said, “Our foray into rare-earth magnet-free motors reflects our commitment to technological leadership. We are continuously evolving to meet the growing demands of the EV industry.”
Dr. James Widmer, Co-Founder and CEO of AEM, added, “This collaboration will bring high-quality powertrain technology to Indian customers and strengthen the country’s sustainability and self-reliance goals under the Atmanirbhar Bharat mission.”
The domestic production of these motors will support the Make in India initiative by reducing reliance on imported components and strengthening local EV supply chains.
Sterling Tools, traditionally known for manufacturing automotive fasteners, is expanding its presence in the electric vehicle component space through strategic ventures.
AEM, a spin-off from Newcastle University’s motor research team, specializes in sustainable electric motor designs and holds 46 international patents. This partnership marks a significant step toward developing alternative EV technologies and reducing global dependence on rare-earth magnets.
