We’re pleased to announce the participation of the Low Carbon Innovation Fund 2 (LCIF2) in the latest equity issuance by Advanced Electric Machines (AEM). This follows LCIF2’s earlier investment in an AEM loan, which we were able to lead because of our prior experience with similar technologies.
Advanced Electric Machines (AEM), a leader in sustainable motor manufacturing primarily for the automotive industry, announces it has secured £23 million of new investment. 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 AEM’s manufacturing facility in the North East,
- 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 AEM’s 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.
Dr 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 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.”
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.”
Learn more about Advanced Electric Machines at: www.advancedelectricmachines.com
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About AEM
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.
About Low Carbon Innovation Fund 2
LCIF2 is managed by Turquoise and is a venture capital fund investing in eligible small to medium sized businesses based in England, particularly the areas covered by its local government backers, developing products and services which will have a beneficial environmental impact.
LCIF2 is funded by the European Regional Development Fund (ERDF), following a successful bid by Norfolk County Council and the University of East Anglia. ERDF is an investment programme part financed by the European Union. LCIF2 is part of the UK government’s portfolio of business support products.
LCIF2 has received £10.9m (for co-investment alongside private monies) from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Levelling Up, Housing and Communities is the Managing Authority for this funding. Established by the European Union, the ERDF helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.
In addition to participating in the equity fundraising, the Low Carbon Innovation Fund 2 (LCIF2) supported AEM by providing a bridge loan to support operations prior to completion. LCIF2’s fund managers were able to do this because of relevant experience of taking similar technologies to exit, and the approach taken by AEM’s senior lenders InnovateUK.
Contacts:
Advanced Electric Machines
Alex Michaelides, Torque Agency Group
amichaelides@torqueagencygroup.com | +44 (0) 7802 865 732
Euan Antona, Torque Agency Group
eantona@torqueagencygroup.com | +44 (0) 7702 334 887