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Seven-figure development contract bolsters AEM’s rare-earth-free technology for passenger cars

- New technology demonstrator proves passenger car viability whilst reducing dependency on concentrated rare earth supply chains

- Breakthrough innovation delivers superior performance without neodymium, dysprosium, or other critical minerals

- AEM’s SSRD motor the subject of a major seven-figure development contract awarded by a leading automotive technology company for passenger applications

- Technology demonstration comes as automotive sector awaits detail on Critical Minerals Strategy

A rapidly growing UK technology business is demonstrating how the automotive industry can diversify its supply chains and reduce reliance on rare earth materials, unveiling an innovative passenger car electric motor demonstrator unit, that achieves superior performance using only abundant, widely available materials.

Advanced Electric Machines (AEM) has revealed its SSRD (Super Speed Reluctance Motor) technology demonstrator for passenger car applications at a critical moment for the UK automotive industry. With it, the firm has also announced that it has secured a major seven-figure contract with a leading global tier one company, to develop SSRD motors for use in high volume passenger car applications.

As global supply chains for rare earth elements are highly concentrated and the UK government's promised Critical Minerals Strategy remaining indefinitely delayed, AEM's demonstration proves that supply chain diversification is not just possible but can significantly boost vehicle performance.

The automotive industry's reliance on rare earth permanent magnet motors has created supply chain concentration that presents strategic challenges for the sector. With over 85% of global rare earth processing concentrated in a single region, manufacturers face potential vulnerabilities from supply disruptions, price volatility, and the natural challenges of highly concentrated supply chains.

AEM's SSRD technology demonstrator addresses these supply chain challenges entirely. Unlike traditional permanent magnet motors that require neodymium, dysprosium, and other elements from concentrated supply chains, the SSRD motor achieves industry-leading performance using only abundant materials available from diverse global sources. The passenger car demonstrator delivers remarkable specifications that match or exceed traditional permanent magnet alternatives. Market-leading performance with up to 30,000 rpm capability, combines with excellent figures on the WLTP drive cycle and superior efficiency in real life driving environments.

The technology's fully recyclable design eliminates permanent magnets entirely, combining simplified construction that enables cost-effective manufacturing with enhanced supply chain resilience. This represents a fundamental breakthrough that proves high-performance electric motors can achieve excellent results using diversified material sources.

"This technology demonstrator proves that British innovation can address one of the automotive industry's key supply chain challenges," said Dr James Widmer, CEO and co-founder of Advanced Electric Machines. "We're demonstrating a path to enhanced supply chain resilience while delivering superior performance outcomes for our customers."

Market resilience

The timing of AEM's demonstration addresses growing industry focus on supply chain diversification. Recent years have highlighted the importance of resilient supply chains, with manufacturers increasingly seeking alternatives that reduce concentration risk and provide greater flexibility in sourcing strategies.
The SSRD technology demonstrator arrives as policymakers work to finalise the UK's Critical Minerals Strategy. While government strategy development continues, AEM is providing tangible proof that British innovation can deliver immediate solutions to enhance supply chain resilience. The passenger car demonstrator represents a crucial milestone in proving the viability of alternative approaches to motor technology.

"We're proving that supply chain diversification is achievable today," emphasised Dr Widmer. "This demonstrator shows passenger car manufacturers that they can achieve superior performance while building more resilient and flexible supply chains."

Founded in 2017 as a spin-out from Newcastle University, AEM's innovations are protected by 46 international patents covering unique motor designs and manufacturing processes, positioning the company at the forefront of supply chain innovation for the global automotive sector.

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