Advanced Electric Machines (AEM), a leader in sustainable motor manufacturing primarily for the automotive industry, announces it has secured £23 million of new investment.
Based in the North East of England, Advanced Electric Machines Limited was founded in 2017, when it was spun out from Newcastle University’s world-class electric motor research team, led by AEM’s CEO, Dr James Widmer, and CTO, Dr Andy Steven.
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.
AEM’s advanced technology will enable leading passenger and commercial electric vehicle manufacturers to reduce their environmental impact and dependence on critical supply chains, without compromising on quality and performance. Historically, engineers have struggled to match the performance of rare earth permanent magnet motors when attempting to develop alternatives. AEM’s technology overcomes these challenges, while reducing the environmental impact.
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.
- 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.
- Bolster R&D capabilities to bring its copper-free motor to production, which will further improve recyclability and move AEM closer to the goal of being the world’s most sustainable electric motor manufacturer.
Steven Poulter, Head of Principal Structuring and Investments at Barclays, will join the Board of AEM.
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.”
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.
Based in the North East of England, Advanced Electric Machines Limited was founded in 2017, when it was spun out from Newcastle University’s world-class electric motor research team, led by AEM’s CEO, Dr James Widmer, and CTO, Dr Andy Steven. AEM technologies are covered by 46 international patents protecting their unique motor designs and manufacturing processes around the world.
Learn more about Advanced Electric Machines at: www.advancedelectricmachines.com
