A new startup, Conifer, has burst onto the electric vehicle (EV) scene with a groundbreaking innovation: electric hub motors that eliminate the need for rare earth elements. Founded by a team of engineers from Lucid Motors and Apple's electric car project, Conifer has secured a $20 million seed round from prominent investors, including True Ventures, MaC Ventures, and MFV Partners.

The company's proprietary motor design leverages ferrite magnets, which are more abundant and cost-effective than rare earth elements. This approach not only reduces production costs but also mitigates supply chain risks, particularly in the current volatile trade environment. Conifer's motor boasts higher efficiency and power than comparable options, all while being half the size.

The timing of Conifer's emergence is auspicious, as the electric motor development landscape is rapidly evolving. Companies like Germany's DeepDrive and Finland's Donut Lab are pushing the boundaries of electric motor technology, making them more efficient, powerful, and affordable. Meanwhile, battery prices, which account for a significant portion of EV costs, continue to decline, albeit at a slower pace than in previous years.

Conifer is initially targeting the small mobility space with its "drop-in" hub motor, which can be seamlessly integrated into existing designs without major modifications. The company is focusing on on- and off-road vehicles with two, three, or four wheels, but has also garnered interest from lawnmower and tractor manufacturers, as well as HVAC companies. With a handful of global customers already on board, Conifer plans to start shipping production motors later this year.

Ankit Somani, one of Conifer's co-founders, expressed frustration with the lack of innovation in electric motor technology, citing a disproportionate focus on battery development. "There was a lot of investment in the battery technology segment, but not enough on the powertrain front," Somani said. "We saw that as an opportunity from a market standpoint, that there's not enough people who have thought enough about this from ground up."

Conifer's novel approach extends to its manufacturing strategy, which involves localizing supply chains around its facilities and implementing highly automated, adaptable production lines. This "microfactory" concept, popularized by companies like Arrival, aims to reduce complexity and increase efficiency. Somani believes Conifer's motors, being less complex than those used in cars, will mitigate the risks associated with this approach.

When it comes to selling its motors, Somani takes a pragmatic approach, focusing on the "drop-in" nature of the product and its tangible benefits, such as a 10% range improvement, rather than delving into the intricacies of Conifer's technology and manufacturing strategy. This approach has resonated with larger, more established companies, which are often wary of startup risks.

With its innovative technology, strategic manufacturing approach, and significant funding, Conifer is poised to make a meaningful impact in the electric vehicle industry. As the company continues to grow and expand its customer base, it will be interesting to see how its rare earth-free electric hub motors shape the future of sustainable mobility.