About Modal Motors
Modal Motors makes electric motors and generators in the U.S., using a supply chain based in the U.S. and allied countries. Its motors use a patent-pending design called a transverse flux motor. Outside tests show the design beats Chinese rare-earth motors on torque for their size, efficiency and weight. Buyers can choose a version with no rare-earth magnets or one with U.S.-sourced rare-earth magnets. The first product is a small drone motor. The second, the Hybrid Enigma Drive, uses magnetic gears to combine engine and electric power.
The company is based in Farmington Hills, Michigan, and makes its motors at a plant in Detroit. It opened orders for its first drone motor on June 3, 2026. Modal Motors expects first deliveries in the fourth quarter of 2026. Michael Van Steenburg founded it. Mark Hanchett is chief executive. Van Steenburg, Kent Helfrich and Lynn Bishop are directors.
Funding Rounds (SEC Form D)
| First sale | Filed with SEC | Amount sold | Investors | Avg. check | Terms | Filing |
|---|---|---|---|---|---|---|
| Oct 19, 2026 | Oct 27, 2026 | $1,000,000of $3.0M target | 1 | $1.0M | Equity, Simple Agreements for Future EquityRule 506(b) | Form D ↗ |
| Apr 17, 2026 | Oct 26, 2026 | $1,705,000of $5.0M target | 8 | $213K | Equity, Simple Agreements for Future EquityRule 506(b) | Form D ↗ |
| Oct 23, 2025 | Nov 13, 2025amended Jan 14, 2026 | $2,101,787fully sold | 13 | $161K | EquityRule 506(b) | Form D/A ↗1 earlier filing |
| Total, three offerings | $4,806,787 | |||||
First sale is the date the first investor in the offering committed to invest. Companies must file Form D within 15 days of that date, so filing dates run later.
Rounds announced by Modal Motors
What the company said publicly about its funding. Announced amounts can differ from Form D figures: an announcement can combine several closings, and some money is raised without a Form D.
| Announced | Round | Amount | Investors | Source |
|---|---|---|---|---|
| Nov 4, 2025 | Seed | $2M | Automotive World ↗ Charged EVs ↗ |
Why Investors Backed Modal Motors
The pitch behind Modal Motors is simple: electric motors that work without rare-earth magnets. Michael Van Steenburg, the founder, says China is slowly monopolizing rare-earth supply and that U.S. supply is still years away. Modal opened orders for its first drone motor in June 2026, and the State of Michigan chose it for a prototyping grant in 2025. The company has not named the investors in its seed round or said why they invested.
The problem it targets
Many electric motors use rare-earth magnets, and Van Steenburg says China has shown it will restrict access. "China's already flexed its muscles a couple times," he told TechCrunch in September 2026. He says other U.S. motor makers are "basically knocking off Chinese motors" and hoping U.S. magnet supply catches up. Cost is a second problem. He told SBN Detroit in November 2025 that a standard motor has dozens of precisely wound poles. In his words, makers must then buy complex machines or rely on manual labor.
What the product does
Modal's motors use a patent-pending transverse flux design. Van Steenburg told SBN Detroit that its drone motors have about 10 parts, which he says means faster assembly and lower cost. The first product, the OR3627-900kV, weighs 130 grams and is under 42 millimeters across. It delivers up to 360 watts at peak and reaches 9,000 revolutions per minute. The second product, the Hybrid Enigma Drive, uses magnetic gears with no touching parts to combine engine and electric power.
Progress so far
Modal opened orders for the OR3627-900kV on June 3, 2026. Modal expects first deliveries in the fourth quarter of 2026 and high-volume shipments in the first quarter of 2027. In September 2025, the State of Michigan chose Modal for a Make It in Michigan prototyping grant. TechCrunch reported on September 23, 2026 that Modal was among the Startup Battlefield 200 founders set to compete at its Disrupt event the next month. The company has not reported revenue, and its releases name no customers.
Who backs it
Michigan Capital Network, a Grand Rapids investor, lists Modal in its portfolio. Modal closed the first part of a $2 million seed round, Automotive World reported on November 4, 2025. It has not named the investors. The State of Michigan announced Modal as a winner of its Make It in Michigan Mobility Prototyping Grant on September 23, 2025. The program provides awards of up to $100,000 per company. Kent Helfrich, Lynn Bishop and Michael Van Steenburg sit on the board.
How the market is moving
A rival drone motor maker says new U.S. rules favor American-made motors. EU Motors, a Polish company, said on February 26, 2026, that it opened a plant in Hallandale Beach, Florida. It tied the move to a December 22, 2025 notice from the Federal Communications Commission (FCC). EU Motors says the notice requires drone makers seeking FCC approval to use U.S.-made motors. The Florida plant starts at 5,000 motors a month, according to EU Motors.
We wrote this summary from public statements by Modal Motors and its investors. It is not investment advice.
Modal Motors in the News
Leadership Team
Executive officers and directors listed on Modal Motors's Form D filed Oct 27, 2026.
Earlier filings also listed Paul D'Amato (director, last listed Jan 2026), James Burton (executive officer, last listed Jan 2026) and Ebru Van Steenburg (executive officer, last listed Jan 2026).
Sources
- SECModal Motors Inc. Form D, filed Nov 13, 2025
- SECModal Motors Inc. filing history
- Company siteProducts page on modalmotors.com
- PressModal Motors release on PR Newswire: order books open for the OR3627-900kV drone motor (June 3, 2026)
- PressState of Michigan release: 2025 Make It in Michigan Mobility Prototyping Grant winners (Sept. 23, 2025)
- InvestorPortfolio page on michigancapitalnetwork.com
- PressLinear Labs release on PR Newswire (July 28, 2020): Michael Van Steenburg, vice president of technology
- PressGeneral Motors release (July 27, 2021): Kent Helfrich named chief technology officer and president of GM Ventures
- PressEU Motors release on PR Newswire: Florida plant and FCC notice (Feb. 26, 2026)