England-based Advanced Electric Machines (AEM) raises £23M in series A round funding. The funding will be used to scale up production capacity at its facility in the North East, deliver on ambitious growth plans to establish a global sales footprint, and bolster R&D capabilities.
The Series A funding round was led by Legal & General Capital and Barclays Sustainable Impact Capital with significant additional investment from Par Equity. Other investors included Northstar Ventures, the Low Carbon Innovation Fund 2 and Turquoise Capital LLP.
AEM’s motor technologies remove the need for polluting rare earth metals in electric vehicle (EV) motors, the production and processing of which is concentrated in China. By eliminating rare earth permanent magnets, costs as well as reliance on geographically concentrated supply chains are reduced, and recyclability and environmental footprint of the motor is significantly improved.
The investment will enable AEM to: Scale up production capacity at its manufacturing facility in the North East, creating 40 new skilled green jobs in the next two years. Establish a global sales and service footprint, accelerating the rollout of its innovative motor solutions. AEM’s HDSRM motor, designed for commercial vehicles, is already in production and in vehicles of customers across the UK, Europe, North America and APAC.
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Accelerate the progress in the development of its SSRD motor for passenger vehicle segment. The SSRD has been developed with the support of Innovate UK, the Advanced Propulsion Centre and leading academic and automotive partners, including Bentley Motors.
Prof. James Widmer, CEO and co-founder of Advanced Electric Machines, said: “Today’s funding announcement clears our path to sustainable growth for years to come. It is a vote of confidence from the market in our vision, our technical capabilities and our mission to rid EV motors of harmful and problematic materials. Everyone at AEM and our new partners are excited for the role we are now able to play in making the electric vehicle sector truly sustainable.”
John Bromley, Managing Director – Clean Energy Strategy & Investments at Legal and General Capital, said: “Legal & General Capital invests in innovative businesses with the potential to accelerate progress to a low-carbon economy. AEM’s technology provides a sustainable, market-leading solution capable of eliminating the need for rare earth materials, thereby reducing emissions and supply chain risk. The UK has a long and successful history in cutting edge automotive technologies and by co-leading this investment, we are supporting AEM to fulfil its potential to create skilled jobs and generate global export revenues.”
Steven Poulter, Head of Principal Structuring and Investments, Barclays, said: “AEM is solving a fundamental constraint of the EV market – the reliance on rare earth metals for motors– which causes significant cost and supply chain challenges. By producing motors that don’t rely on these metals, AEM is able to remove the key barriers to the production and subsequent adoption of EVs. We are excited to be supporting AEM on the next stage of its journey as it expands into passenger vehicles, a growing market critical to the energy transition.”
Andrew Noble, Partner at Par Equity, said: “AEM has designed and built an electric powertrain motor which is greener, faster and more efficient than the incumbent solutions, resulting in significant market pull and potential for growth. It has all the ingredients of the type of business Par Equity likes to back, and we’re excited to partner with AEM at this critical stage as the company scales its team and capabilities to service a large and rapidly growing EV market.”
Advanced Electric Machines’ vision is to design and build the world’s most sustainable EV
motors for the global automotive and transport sectors. It utilises its expertise in materials,
manufacturing and design to ensure its solutions are not only more sustainable, but also more efficient and cost-effective.