Honda invests in Hamilton-based startup Enedym developing rare earth-free electric motors.
Enedym’s motors offer 30–50% cost savings using software-driven SRM technology.
Global trade tensions drive industry away from Chinese rare earth magnet supply chains.
Honda Motor Co. has invested in Enedym Inc., a Hamilton, Ontario-based startup developing electric motor technology that eliminates the need for rare earth magnets. The automaker made the investment through its Honda Xcelerator Ventures arm.
Enedym specializes in switched reluctance motors (SRMs), which use electromagnets and proprietary software instead of rare-earth permanent magnets found in most electric vehicle motors. According to CEO Ali Emadi, the company’s technology addresses traditional SRM challenges by optimizing motor design and control strategies.
Enedym electric motors | Photo: EnedymThe new funding builds on existing collaboration between Honda and Enedym, though neither company disclosed details about their ongoing projects. Manabu Ozawa, managing executive officer at Honda Motor, said the company has “high hopes” for Enedym’s technology, citing the need to reduce reliance on “expensive and environmentally challenging” rare earth materials.
Enedym’s motors are currently being tested with Toyota Tsusho in airport ground support equipment. Emadi previously said the company had shipped prototypes to several automakers. He added that eliminating rare earths allows Enedym’s motors to be produced at 30 to 50 % lower cost compared to conventional options.
Founded in 2015, Enedym was spun out of McMaster University, where Emadi is a professor of mechanical engineering.
Global supply chain disruptions and trade tensions have increased risks tied to rare earth magnets, with China—the largest global supplier—introducing export controls on key inputs earlier this year. Automakers have since accelerated efforts to diversify their supply chains and explore alternative motor technologies.
Canada holds several rare earth deposits, particularly in Quebec and the Northwest Territories, but lacks significant refining capacity. Federal and provincial initiatives have aimed to support rare earth exploration and processing as part of the strategy to strengthen domestic critical mineral supply chains.
Source: Automotive News
