Advanced Electric Machines Group (AEM), the UK-based manufacturer of rare earth and magnet-free electric motors, has secured £16 million of funding to support the expansion of its product portfolio and accelerate development of new electric propulsion solutions.
AEM's technology is applicable to a wide range of applications, including passenger car, motorcycle, ATV, the full range of trucks, buses and construction machinery and into the marine sector. The company's motors (which can be used for both primary and secondary drive applications) eliminate the need for permanent magnets and rare earth materials, including the replacement of copper windings with aluminium, helping customers reduce supply-chain risk while delivering competitive performance, efficiency and cost with reduced weight and improved recyclability.
The funding round was led by existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures and the Low Carbon Innovation Fund, alongside participation from new investors. Their equity investment is complemented by loan support from
Innovate UK, and allows for expansion of facilities, expertise and production capability in Washington.
The investment will support development of AEM's next-generation high-torque motor platform, extending the company's existing technology into more demanding commercial vehicle and industrial applications. The new products build on an extensive portfolio of motor technology, some of which is already in series production and deployed with commercial vehicle customers across Europe and Asia. AEM’s technology portfolio includes the use of advanced control strategies, aluminium coils, and higher speed, smaller and lighter designs, which are being productionised.
AEM's products can provide a magnet-free drop-in replacement motor that delivers high efficiency, reduced weight and a competitive cost profile, while maintaining comparable packaging and performance characteristics. By eliminating permanent magnets, customers can reduce their exposure to the supply-chain challenges and the price volatility associated with rare earth materials.
AEM manufactures its motors at its facility in Washington, where rare earth and magnet-free technology is already able to be produced at commercial scale. The company is leveraging this proven manufacturing capability to support the development and future production of higher-torque products aimed at some of the most demanding electric powertrain applications.
Growing geopolitical uncertainty, increasing concentration of rare earth supply chains and demand for recyclability have intensified industry focus on alternative motor technologies. AEM's approach addresses these challenges by using widely available materials while delivering the performance, cost and durability required by OEMs and Tier 1 suppliers.
Dr James Widmer, CEO and 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.”
He continued: "This funding enables us to accelerate development of our next generation of products and expand our offering into higher-power and higher-torque applications. We are building on a platform that is already proven in production and the field and designed to help customers strengthen supply-chain resilience while meeting increasingly demanding performance requirements. The new motor platform will complement AEM's existing HDRM commercial vehicle portfolio and strengthen the company's wider product roadmap, which also includes its SSRD technology for passenger vehicle applications currently progressing through OEM development programmes.”
Greg Debicki, director principal investments at
Barclays Climate Ventures, said: “We are delighted to support AEM, a leading UK manufacturer based in the northeast, whose growth highlights the important role UK technological innovation can play in supporting the global transition to electrification. Developed at Newcastle University, their innovative motor platform has the potential to support businesses around the world, while reinforcing the UK's reputation for advanced engineering. This investment will help accelerate AEM's growth and we are glad to support the expansion of this regional champion.”
Andrew Noble, COO at
PXN Group, said: "AEM is tackling one of the hardest and most important problems in the electrification of transport: how to build motors that perform better, cost less and don’t rely on rare earth supply chains outside of the UK and Europe. James and the team have demonstrated the engineering depth to turn that vision into a serious industrial business, and this round is a real vote of confidence in the progress they’ve made. We’re thrilled to continue our support.”
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. Northstar Ventures has worked with AEM through its evolution and has always been committed to backing the companies whose technologies will be the driver of future prosperity.”
Turquoise International (assisted by Magma International AG) acted as corporate finance adviser and Sintons LLP provided legal counsel to AEM in connection with the transaction.