2 minute read - 21st November 2023
£23m investment for EV motor manufacturer
Advanced Electric Machines (AEM), a motor manufacturer primarily for the automotive industry, has secured £23m of new investment. The funding will be used to scale up production capacity at its facility in the North East and create new jobs, deliver on ambitious growth plans to establish a global sales footprint, and bolster R&D capabilities.
AEM’s motor technologies remove the need for polluting rare earth metals in electric vehicle 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. AEM says, 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.
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.”
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. Steven Poulter, head of principal structuring and investments at Barclays, will join the Board of AEM.