North East technology. Global reach.
Award-winning Sunderland-based Advanced Electric Machines (AEM) has secured a substantial funding boost totalling £16m to power next-level electric motor technologies.
The Newcastle University spinout has designed and manufactured a unique suite of electric motors for a diverse range of transport applications from cars and motorcycles through to heavy-duty trucks, buses and construction machinery. The company’s motors eliminate the need for permanent magnets and rare-earth materials, helping customers reduce supply-chain risk while delivering competitive performance, efficiency and cost.
Northstar Ventures has supported the company through several rounds of investment and has deployed capital from both the North East Innovation Fund and the North East Spinout Inspire Fund in this latest round. The £22.5m North East Spinout Inspire Fund is backed by the universities of Durham, Newcastle, Northumbria, Sunderland and Teesside, as well as the North East Mayoral Strategic Authority (via the North East Fund). It has been set up to commercialise the research and innovation emerging from the North East’s five universities. The North East Innovation Fund is also backed by the North East Mayoral Strategic Authority, led by the North East Mayor, Kim McGuinness.
Northstar Ventures invested alongside Barclays Climate Ventures, PXN Ventures and the Low Carbon Innovation Fund, amongst others. The funds will be used to support the development of an extended range of rare-earth free motors with a focus on heavy commercial vehicle and industrial applications. The new products build on motor technology that is already in production and which has been sold to customers worldwide.
With more than 2 million electric vehicles now on UK roads and adoption continuing to grow rapidly, the long-term outlook for the EV sector remains highly attractive. Companies such as AEM, which are developing transformational technologies for the next generation of electric mobility, are of significant strategic importance. The company has the potential to generate economic growth, high-value employment and technological leadership in the North East while reinforcing the region’s reputation as a powerhouse of innovation. AEM is a fine example of what can be achieved by a combination of the world-renowned research capability of Newcastle University and the talent and expertise based in Sunderland’s industrial heartland.
James Widmer, CEO and Founder of AEM, says: “OEMs are increasingly looking for motor technologies that can deliver performance, cost competitiveness and manufacturing scalability without dependence on rare-earth materials. Our technology has already demonstrated that this is possible in production environments.
“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 designed to help customers strengthen supply-chain resilience while meeting increasingly demanding performance requirements.”
Alex Buchan, Investment Director at Northstar Ventures, says: “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.”
The North East Spinout Inspire Fund is part of the North East MSA £100m regional investment framework administered by The North East Fund. Along with both the North East Accelerate and North East Elevate funds, it aims to strengthen access to early-stage finance for start up, scale up and growing companies in North East England, and tackle long-standing market failures that have hampered innovation-led growth in the region.
