UK Startup AEM Bags £16 Mn to Grow Rare Earth-Free Electric Motor Production

The company makes electric motors that do not use rare earth materials or magnets, making them more sustainable and cost-effective.

The funding round was led by existing investors Barclays Climate Ventures, PXN Ventures, Northstar Ventures, and the Low Carbon Innovation Fund. New investors also joined the round.

In addition to the equity funding, Innovate UK provided loan support. AEM will use the funding to expand its facilities in Washington, grow its team, increase production capacity, and develop new electric propulsion technologies.

According to Dr James Widmer, CEO and co-founder of AEM, OEMs are increasingly looking for motor technologies that can deliver performance, cost competitiveness and manufacturing scalability without dependence on rare earth materials and magnets.

"Our technology has already demonstrated that this is possible in production environments. This funding enables us to accelerate development of our next-generation of products and expand our offering into higher-power and higher-torque applications. We are building on a platform that is already proven in production and the field and designed to help customers strengthen supply-chain resilience while meeting increasingly demanding performance requirements.”

Greg Debicki, Director, Principal Investments at Barclays Climate Ventures, said:“Developed at Newcastle University, AEM’s innovative motor platform has the potential to support businesses around the world, while reinforcing the UK's reputation for advanced engineering. This investment will help accelerate AEM's growth and we are glad to support the expansion of this regional champion.”

Advanced Electric Machines (AEM) designs and manufactures high-performance electric motors that are built to be more sustainable and environmentally friendly.

Its electric motors do not use rare earth magnets, which helps lower production costs and reduces the risk of supply chain problems.

Because the motors have no permanent magnets, they are safer, cannot lose their magnetic strength over time, and require simpler cooling systems. They also allow vehicles to coast more efficiently, helping improve overall energy efficiency.

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