The use of cobalt-iron (VaCoFe) core is investigated as an alternative to silicon-iron (FeSi) on the design of interior permanent magnet synchronous motors (IPMSM). A spoke-type IPMSM geometry is optimized considering FeSi and VaCoFe cores for a torque range up to 40 N.m, providing a general comparative analysis between materials, considering the application of a 4-motor competition vehicle’s powertrain. A genetic optimization algorithm is applied over a hybrid analytical/finite-element model of the motor to provide sufficiently accurate electromagnetic and thermal results within a feasible time. VaCoFe can result in an estimated increase of up to 5 % in efficiency for the same torque, or up to 64 % torque increase for the same efficiency level. After optimization, and using a detailed time-dependent model, a potential 3.2 % increase in efficiency, a core weight reduction of 4.1 %, and a decrease of 9.6 % in the motor’s core volume was found for the VaCoFe at 20 Nm. In addition, for the same motor volume, the VaCoFe allows an increase of 51.9 % of torque with an increase of 1.1 % of efficiency, when compared with FeSi.