Sustainable motor company lands £23m investment
A sustainable EV motor manufacturing company has secured £23m of new investment which will enable it to establish a global sales footprint and scale-up its North East production capacity.
Headquartered in Washington, Advanced Electric Machines’ technology removes the need for polluting rare earth metals in electric vehicle motors.
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 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.
The investment will enable the business to create 40 jobs in the next two years at its North East facility, accelerate the rollout of its technology globally, and bolster its R&D facilities.
Steven Poulter, head of principal structuring and investments at Barclays, will join the Board of AEM.
James Widmer, chief executive 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 and investments at Legal and General Capital, added: “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.”
Steven Poulter, head of principal structuring and investments at Barclays, said: “AEM is solving a fundamental constraint of the EV market – the reliance on rare earth metals for motors – which causes significant cost and supply chain challenges.
“By producing motors that don’t rely on these metals, AEM is able to remove the key barriers to the production and subsequent adoption of EVs. We are excited to be supporting AEM on the next stage of its journey as it expands into passenger vehicles, a growing market critical to the energy transition.”
Legal advice to AEM and the management team was provided by Sintons, led by partner and head of corporate, Adrian Dye and supported by Sophie Townes. Adrian added: “We have worked with AEM since incorporation and are delighted to assist AEM in achieving this latest investment. Congratulations to all involved in successfully completing the transaction.”
- Featured in Insider Media on 20th November 2023
