Modal Motors

Cover Block

Attribute	Details
Name	Modal Motors
Tagline	High-torque, high-efficiency non-rare-earth electric motors and generators for B2B applications, made in the USA.
Headquarters	Farmington Hills, USA
Founded	2024
Stage	Seed
Business Model	B2B
Industry	Deeptech
Technology	Hardware
Geography	North America
Growth Profile	Venture Scale
Founding Team	Co-Founders (2)
Funding Label	Seed (total disclosed ~$2,100,000)

Links

• Website: https://www.modalmotors.com/
• LinkedIn: https://www.linkedin.com/company/modalmotors
• X / Twitter: https://x.com/modalmotors

What an Investor Needs First

Modal Motors is a deeptech hardware startup commercializing a new class of electric motors that aim to decouple high performance from reliance on Chinese-controlled rare-earth minerals [Charged EVs, 2025]. The company, spun out from Veolectra, Inc. in 2024, is built on a patent-pending Transverse Flux Motor (TFM) architecture it claims delivers superior torque density and efficiency while using non-rare-earth or U.S.-and-allied sourced magnets [DBusiness, 2024].

Founders Michael and Ebru Van Steenburg are leveraging Michigan's automotive heritage to target B2B OEMs across e-mobility, robotics, and data centers, with a clear initial wedge into the drone propulsion market. The business model is direct sales of motors and generators, with its first product, the OR3627-900kV, now open for orders ahead of planned Q4 2026 deliveries [Yahoo Finance / PR Newswire, June 2026].

Having raised a seed round of approximately $2.1 million, the company is in a capital-efficient validation phase, funding its initial production ramp in Farmington Hills. The critical watchpoint over the next 12-18 months is the transition from announced order books to validated, volume customer shipments and third-party performance data.

Data Accuracy: YELLOW -- Core company facts and product claims are confirmed by primary sources; funding details are partially corroborated but lack lead investor confirmation.

Taxonomy Snapshot

Axis	Value
Stage	Seed
Business Model	B2B
Industry / Vertical	Deeptech
Technology Type	Hardware
Geography	North America
Growth Profile	Venture Scale
Founding Team	Co-Founders (2)
Funding	Seed (total disclosed ~$2,100,000)

Inside the Company

Modal Motors was formed in 2024 as a corporate spinout from Veolectra, Inc., a move intended to commercialize patent-pending electric motor technology [DBusiness, 2024]. The company is headquartered in Farmington Hills, Michigan [Perplexity Sonar Pro Brief].

In 2025, Modal Motors raised a seed round, reported at $2 million by Charged EVs, to fund U.S. production [Charged EVs, 2025]. A separate database entry notes a $764,287 portion of a larger $2.1 million seed round closing in October 2025 [Preqin]. The most significant commercial milestone to date is the June 2026 announcement that order books were open for its first product, the OR3627-900kV Drone Propulsion Motor, with first deliveries scheduled for Q4 2026 and high-volume fulfillment targeted for Q1 2027 [Yahoo Finance / PR Newswire, June 2026].

Data Accuracy: YELLOW -- Founding and funding details are reported by third-party publications, but key details like the lead investor and full capitalization are not publicly disclosed.

Under the Hood

Modal Motors’ product strategy centers on a single, publicly detailed hardware unit: the OR3627-900kV Drone Propulsion Motor. The company announced in June 2026 that this motor was available for order, with first deliveries scheduled for Q4 2026 and high-volume fulfillment targeted for Q1 2027 [Yahoo Finance / PR Newswire, June 2026]. The motor is described as being customizable for land, sea, air, robotics, or data center applications [Yahoo Finance / PR Newswire, June 2026].

The underlying technology is built around a patent-pending Transverse Flux Motor (TFM) architecture [Modal Motors, retrieved 2026]. Modal Motors manufactures both non-rare-earth and U.S.-sourced rare-earth electric motors, specifically utilizing iron nitride (FeN) from Niron Magnetics and samarium iron nitride (SmFeN) from USA-and-allied partners [Modal Motors, retrieved 2026]. The company asserts this 100% USA-and-allied supply chain allows its motors to outperform Chinese rare-earth alternatives while achieving the lowest cost of goods sold (COGS) in class [Modal Motors, retrieved 2026].

Public materials reference two other product concepts: a “Modular Motor 01” and a “Hybrid Enigma Drive 02” [Modal Motors, retrieved 2026]. The company’s public claims of third-party validation and over 25 issued patents suggest a foundation of prior R&D [Modal Motors, retrieved 2026].

Data Accuracy: GREEN -- Product claims and specifications are confirmed by the company’s website and a press release distributed via PR Newswire.

Market Research

The market for electric motors is undergoing a foundational shift, driven by geopolitical and supply chain pressures that are redefining sourcing priorities for industrial buyers.

Modal Motors positions itself within the broader market for specialized electric motors used in propulsion and actuation. The company's initial product, the OR3627-900kV Drone Propulsion Motor, targets the commercial and industrial drone market. It aims to serve B2B customers, particularly original equipment manufacturers (OEMs), who are prioritizing a secure, U.S.-and-allied supply chain for critical components [Modal Motors, retrieved 2026].

Demand drivers include the geopolitical push for supply chain sovereignty, supported by legislation like the Inflation Reduction Act and Defense Production Act. A secondary driver is the ongoing electrification of transport and industrial equipment. Modal Motors' CEO, Michael Van Steenburg, stated the company's goal is to enable Michigan manufacturers to compete globally [MITech TV / YouTube, 2026].

Key adjacent markets include the broader market for rare-earth permanent magnet motors. Modal's technology, which utilizes alternative materials like iron nitride (FeN) from partners such as Niron Magnetics, positions it as a direct substitute [Modal Motors, retrieved 2026]. Other adjacent sectors mentioned by the company include data center cooling, marine propulsion, and robotic actuators.

Market Segment	Reported Size (Analogous)	Source & Year
Global Electric Motors Market	$144.3 billion	[Fortune Business Insights, 2023]
Global Industrial Motors Market	$27.4 billion	[MarketsandMarkets, 2023]
Commercial Drone Market	$34.0 billion	[Grand View Research, 2023]

Data Accuracy: YELLOW -- Market sizing is based on analogous third-party reports for broader categories; specific TAM/SAM for Modal's non-rare-earth motor wedge is not publicly detailed.

Competition and Substitutes

Modal Motors enters a hardware market defined by a geopolitical and technological divide, positioning its U.S.-manufactured, non-rare-earth motors against entrenched incumbents and a new wave of challengers.

• Incumbent suppliers. The dominant force is the established global supply chain for permanent magnet motors, heavily reliant on Chinese-sourced rare-earth materials. Companies like Nidec, ABB, and Siemens offer high-performance, cost-effective motors but are subject to supply chain vulnerabilities.
• Technology challengers. A newer segment focuses on developing alternative magnet technologies. Modal’s cited supplier, Niron Magnetics, is a key player here, developing iron nitride (FeN) permanent magnets. Other firms, such as Advanced Magnet Lab (AML) or startups like Turntide Technologies, are pursuing similar goals of reducing or eliminating rare-earth dependence.
• Adjacent substitutes and integrators. For specific applications like drone propulsion or robotics, Modal also competes with specialized motor makers (e.g., T-Motor, KDE Direct) and with OEMs who may choose to design motors in-house.

Modal’s defensible edge rests on its integrated technology stack and its supply chain narrative. The company is commercializing a specific motor architecture (TFM) designed around alternative magnets, claiming third-party validation and 25+ issued patents in its lineage from Veolectra [Modal Motors, retrieved 2026].

Data Accuracy: YELLOW -- Competitive analysis is inferred from market categories and the company's stated positioning; no direct competitor names are confirmed in public sources.

Opportunity

Modal Motors has the potential to become a foundational supplier of strategic electric motor technology to U.S. and allied-nation industrial and defense OEMs.

Scenario	What happens	Catalyst	Why it's plausible
Drone & Robotics Dominance	Modal becomes the propulsion motor of choice for U.S.-made commercial and tactical drones.	First-mover advantage with the OR3627-900kV motor, securing a marquee drone OEM design win.	The company has already commercialized a product specifically for drone propulsion and is accepting orders [Yahoo Finance / PR Newswire, June 2026].
Strategic Industrial Supplier	The company transitions from a component vendor to a Tier-1 or Tier-2 supplier for major automotive, aerospace, or industrial equipment OEMs.	A strategic investment or long-term supply agreement with a major U.S. OEM seeking to de-risk its motor supply chain.	Modal publicly cites sourcing relationships with U.S.-based material suppliers like Niron Magnetics [Modal Motors, retrieved 2026].

Data Accuracy: YELLOW -- Growth scenarios are extrapolated from public product and market focus statements; specific catalyst events are not yet public.

Sources

1. [Charged EVs, 2025] Modal Motors raises $2 million in seed funding to bring its electric motors into production in the US | https://chargedevs.com/newswire/modal-motors-raises-2-million-in-seed-funding-to-bring-its-electric-motors-into-production-in-the-us/
2. [DBusiness, 2024] Startup Spotlight: Modal Motors | https://www.dbusiness.com/daily-news/startup-spotlight-modal-motors/
3. [F6S] Modal Motors Inc | https://www.f6s.com/company/modalmotors
4. [MITech TV / YouTube, 2026] High Torque, Non Rare Earth Motors Made In Michigan | https://www.youtube.com/watch?v=3r7y8cCj3V0
5. [Modal Motors, retrieved 2026] Advanced Electric Motors | Modal Motors | https://www.modalmotors.com/
6. [Preqin] | https://www.preqin.com/
7. [Yahoo Finance / PR Newswire, June 2026] Modal Motors Opens Order Books for its unique OR3627-... | https://finance.yahoo.com/news/modal-motors-opens-order-books-140000180.html
8. [Fortune Business Insights, 2023] | https://www.fortunebusinessinsights.com/
9. [MarketsandMarkets, 2023] | https://www.marketsandmarkets.com/
10. [Grand View Research, 2023] | https://www.grandviewresearch.com/