Advanced Electric Machines (AEM), a Newcastle University spin-out, has secured £16m in funding to accelerate development of new electric motors and create skilled jobs at its Washington base.
Funding and expansion
The funding round was led by existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures and the Low Carbon Innovation Fund, with participation from new investors. Loan support from Innovate UK complements the investment, which will fund expansion of AEM's facilities, expertise and production capability in Washington.
AEM employs more than 60 people at its Teal Farm Way site, where it manufactures electric motors free of rare earth materials and magnets. The new funding is expected to create more than 20 additional jobs.
Technology and impact
AEM's motors eliminate the need for permanent magnets and rare earth materials, replacing copper windings with aluminium. This helps customers reduce supply-chain risk while delivering competitive performance, efficiency and cost with reduced weight and improved recyclability.
The technology can be used in passenger cars, motorcycles, all-terrain vehicles, trucks, buses, construction machinery and the marine sector. The investment will support development of AEM's next-generation high-torque motor platform, extending its technology into more demanding commercial vehicle and industrial applications.
Leadership comments
Dr James Widmer, co-founder of AEM, said: “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.”
Alex Buchan, investment director at Northstar Ventures, said: “The North East has a long-held reputation for producing landmark technological innovations capable of operating in the global arena. Ensuring companies at this stage have access to the capital required to scale is vital.”
Greg Debicki, director principal investments at Barclays Climate Ventures, said: “We are delighted to support AEM, a leading UK manufacturer based in the North East, whose growth highlights the important role UK technological innovation can play in supporting the global transition to electrification.”
