A group of former Lucid Motors and Apple engineers has launched Conifer, a startup focused on electric motors that use ferrite magnets instead of rare earth materials.

The startup has secured US$20 million in seed funding from investors including True Ventures, MaC Ventures, and MFV Partners.

The company targets small electric mobility markets and designs its motors as “drop-in” replacements to ease integration for vehicle makers.

The startup has also received interest from industries such as lawnmower and tractor manufacturing, as well as HVAC systems.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ The shift away from rare earth elements addresses critical supply chain vulnerabilities

Conifer’s use of ferrite magnets instead of rare earth elements targets a persistent vulnerability in the electric vehicle industry.

Nearly 60% of global rare earth processing capacity is concentrated in China, creating significant supply chain risks for Western manufacturers 1.

This strategic pivot is timely considering recent geopolitical tensions, with the Inflation Reduction Act directing over $65 billion in investments toward localizing EV supply chains in the US 1.

The vulnerability extends beyond just access. Rare earth mining and processing carry substantial environmental concerns, with a single ton of rare earth elements typically generating about 2,000 tons of toxic waste 2.

By switching to more abundant and widely distributed ferrite magnets, Conifer potentially addresses cost volatility that has seen rare earth prices fluctuate by as much as 200% during supply disruptions over the past decade 3.

This approach aligns with broader industry efforts to develop supply chain resilience, as manufacturers increasingly view localization as a necessity rather than just a trend 4.

2️⃣ Hub motor innovations are driving a technological renaissance in EV propulsion

Conifer joins a wave of companies reimagining electric motors, with competitors like Donut Lab recently unveiling a hubless motor design capable of producing 630 kilowatts (845 horsepower) while weighing only 88 pounds 5.

These advancements address a critical industry imbalance. While battery technology has received substantial investment over the past decade, motor innovation has lagged behind despite representing a significant cost component in EVs 3.