Modal Motors Raises $2 Million Seed Round to Scale Rare-Earth-Free Electric Motor Manufacturing
Modal Motors, a Michigan-based electric motor manufacturer focused on producing advanced non-rare-earth propulsion systems, has successfully secured funding to accelerate its transition from research and development to full-scale production of its next-generation electric motors. The seed financing round, which brought in $2 million in capital, marks a pivotal moment for the young company as it seeks to scale manufacturing, expand its workforce and solidify its position in the emerging electric mobility and robotics markets.
Founded in 2024 and headquartered in Farmington Hills, Michigan, Modal Motors is developing proprietary electric motor designs that eliminate reliance on rare earth materials while delivering high efficiency, modularity and compatibility with automated assembly lines. These innovations are aimed at reducing dependency on complex global supply chains and providing a scalable, U.S.-based source of propulsion technology for applications ranging from electric vehicles to drones and industrial robotics.
In its initial seed funding round announced in late 2025, Modal Motors raised $2 million to support the move from R&D and prototyping to full production at its Michigan facilities. The infusion of capital enables the company to build out domestic manufacturing capabilities and advance its patented motor designs toward commercialization. Modal Motors’ founder and CEO, Michael Van Steenburg, emphasized that the investment will help the firm deliver scalable motor solutions that align with growing demand for sustainable and domestically produced electric propulsion systems.
Modal Motors’ early financial backing includes support from key entities that are helping the company achieve its production goals. Among the investors participating in the seed round are Centrepolis Accelerator, an innovation accelerator that fosters business growth and supports technology-driven startups, and the Michigan Office of Future Mobility and Electrification, a state government agency focused on advancing mobility innovation and powering economic growth in Michigan’s electric vehicle and mobility ecosystem. Together with other private supporters, these investors have provided the necessary capital to help the company scale its operations domestically.
Modal Motors’ mission to create motors that do not depend on rare earth materials carries significance within a broader industry context in which supply chain vulnerabilities and the high cost of rare earth materials have long been obstacles to more sustainable electric motor production. By engineering motors that achieve high torque density and efficiency without rare earth magnets, Modal Motors hopes to set a new standard for electric propulsion that is both cost-effective and environmentally responsible.
The funding round reflects a growing interest among regional investors and development organizations in supporting advanced manufacturing technologies that contribute to economic development and technological sovereignty. With manufacturing focused entirely within the United States, Modal Motors positions itself not only as an innovator in electric motor design but also as a contributor to rebuilding advanced industrial capabilities domestically. This approach resonates with federal and state initiatives aimed at strengthening local supply chains and fostering high-tech manufacturing jobs.
The $2 million seed round represents Modal Motors’ first major external financing milestone and will directly support the build-out of production infrastructure and workforce expansion at its Michigan facilities. The company’s proprietary motor designs are engineered for deployment across multiple sectors, including clean electric mobility solutions, autonomous robotics, aerial drones, and other industrial applications that demand high-performance, scalable electric propulsion systems.
Beyond manufacturing, Modal Motors’ funding will enable the company to continue refining its technology platform, validate performance at scale and prepare for future rounds of investment that will be needed to accelerate market entry and broaden commercial reach. The successful fundraising also signals investor confidence in the company’s leadership, product vision and the long-term potential of its motor technology.
Modal Motors’ traction in securing seed funding is an important step in a competitive landscape where electrification and advanced propulsion technologies are at the forefront of innovation. As demand for electrified systems continues to grow across mobility and industrial sectors, the company’s investment in domestic production capacity and sustainable technology development positions it to be a noteworthy player in shaping the future of electric propulsion.
Looking ahead, Modal Motors plans to use the seed funding to complete its transition from prototype to production, expand its team of engineers and technicians and forge partnerships with early customers who are ready to integrate its motors into next-generation electric vehicles, drones and automated systems. With a firm financial foundation and a clear path toward commercialization, Modal Motors stands poised to make meaningful advances in the electrification of transportation and equipment, building on the support of strategic investors committed to American-made innovation.
