Image Source: Business India
Sterling Tools Limited, one of India's prominent auto component producers, has announced a significant strategy entry into the electric vehicle (EV) business. Via its subsidiary Sterling Gtake E-Mobility Ltd (SGEM), the firm will produce and sell rare earth magnet-free traction motors for EVs based on patented technology owned by UK's Advanced Electric Machines (AEM) Ltd. This project promises to make India's EV supply chain robust, enable self-reliance, and present a green alternative to traditional motors based on Chinese permanent magnets.
Strategic Collaboration and Technology Transfer
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Sterling Tools, through SGEM, has entered into a technology licensing deal with Advanced Electric Machines (AEM) Ltd, UK, for the manufacturing of rare earth magnet-free traction motors at its Faridabad facility in Haryana.
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The AEM technology patented allows high-performance motors without the use of rare earth magnets, with zero compromise on weight and size.
Market Impact and Industry Goals
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The transition is expected to lessen India's reliance on China for permanent magnets, giving indigenous manufacturers a permanent supply chain solution.
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The effort complements the Indian government's Atmanirbhar Bharat (self-reliant India) and Make in India missions, aimed at encouraging domestic manufacturing and import substitution.
Business Expansion and Future Plans
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SGEM will address all segments of the traction motor industry, which is anticipated to grow to around ₹15,000 crore by 2030.
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Sterling Tools aims to go beyond motor control units (MCUs) to provide motor and controller solution combos in a single package, targeting the trend of aggregating EV sub-systems.
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The tie-up entails co-development of evolved, multifunctional powertrain solutions for a broad array of electric vehicles.
Leadership Statements
Anil Aggarwal, Sterling Tools' Chairman, spoke about the firm's focus on innovation and leadership in EV technology to emerge as a full-fledged solution provider to the sector.
Dr. James Widmer, AEM's CEO, pointed to the collaboration's significance in bringing proven, magnet-free motor technology to Indian customers for emission reduction as well as self-reliance objectives.
Industry-Wide Impact
The project will allow Indian suppliers and automakers to get access to sophisticated EV technology within the country, creating a self-sustainable ecosystem for the automotive industry.
By manufacturing these motors in India, Sterling Tools will promote increased adoption of EVs in India, helping the country achieve its sustainability and zero-emission goals.
Sources: Silicon India, Auto Economic Times, SME Street, Mobility Outlook, EV Reporter, Business Standard, The Week
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