North East electric motor manufacturer Advanced Electric Machines (AEM) has secured £16m in equity and loan funding to scale up production and accelerate the development of its next-generation high-torque motor platform.
Spun out of Newcastle University in 2017 by chief executive Dr James Widmer and CTO Dr Andy Steven, AEM manufactures rare earth and magnet-free electric motors for commercial vehicles, passenger cars, motorcycles, and maritime applications.
The company’s proprietary technology replaces permanent magnets and heavy rare earth materials with sustainable alternatives, including substituting traditional copper windings with compressed aluminium coils.
This design is said by the company to eliminate exposure to volatile, concentrated rare-earth supply chains while improving motor recyclability and reducing overall component weight.
The fresh capital will be used to expand facilities and manufacturing capacity at AEM’s production plant in Washington, Tyne and Wear, while supporting the rollout of its higher-torque HDRM commercial vehicle platform and its SSRD motor technology for passenger vehicles.
“OEMs are increasingly looking for motor technologies that can deliver performance, cost competitiveness and manufacturing scalability without dependence on rare earth materials and magnets,” said Widmer.
“This funding enables us to accelerate development of our next generation of products and expand our offering into higher-power and higher-torque applications.”
The investment comprises equity backing from existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures, and the Low Carbon Innovation Fund, alongside new investors and loan financing from Innovate UK.
“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,” said Greg Debicki, director principal investments at Barclays Climate Ventures.
“This investment will help accelerate AEM’s growth and we are glad to support the expansion of this regional champion.”
