Sterling Tools Limited, a manufacturer of automotive components, has entered into a technology licensing agreement with UK-based Advanced Electric Machines (AEM) to develop, manufacture, and market rare earth magnet-free traction motors for electric vehicles (EVs) in India. The motors will be produced at the company’s plant in Faridabad through its subsidiary, Sterling Gtake E-Mobility (SGEM).
The agreement enables SGEM to manufacture motors based on AEM’s patented technology, which eliminates the use of rare earth magnets—materials that are currently subject to global supply chain disruptions. The company expects to cater to all segments of the traction motor market in India, which is projected to reach approximately INR 150 billion (about USD 1.8 billion) by 2030. Sterling also plans to jointly develop integrated motor and controller solutions as part of its EV components expansion.
“Sterling’s foray into Rare Earth Magnet-Free motors demonstrates the Group’s commitment to being a technology leader and an industry pioneer. We are expanding beyond MCUs to being a complete solution provider and meeting the EV Industry’s growing demand for advanced technology. EV sub-systems are being increasingly consolidated into multifunction units and Sterling will also offer our customers integrated motor and controller solutions. The Sterling Group will continue to extend excellent technical and application support to its customers to help drive greater adoption of EVs in India,” said Anil Aggarwal, Chairman of Sterling Tools.
“India’s automotive and zero-emission manufacturing market offers immense potential for growth and innovation. Through our partnership with Sterling Tools, we are bringing our proven expertise in magnet-free motors to Indian customers across a wide range of vehicle categories. Together, we can create high-quality powertrain solutions that cater to India’s growing need to reduce its tailpipe emissions, while also supporting the country’s self-reliance and sustainability goals,” stated Dr. James Widmer, CEO of AEM.
The companies have collaborated over several years to align the technology with the Indian market and develop a domestic supply chain.
Sterling Tools Limited, established in 1979, manufactures high-tensile cold-forged fasteners and automotive components. The company serves a range of vehicle segments including passenger cars, two-wheelers, commercial vehicles, and agricultural and construction equipment. Through its subsidiary, it has expanded into electric vehicle components, supplying both established and emerging original equipment manufacturers.