Series A24 November 2023

Advanced Electric Machines secures £23m in Series A funding to expand sustainable motor production.

Legal & General Capital and Barclays Sustainable Impact Capital co-led the Series A round to support manufacturing expansion and international growth.

£23.0MSeries A

Advanced Electric Machines designs and manufactures sustainable electric motors and powertrain systems without the use of rare-earth magnets or copper windings.

Advanced Electric Machines has secured £23m in Series A funding to scale production capacity and accelerate the commercial rollout of its sustainable electric motor technology. The round was co-led by Legal & General Capital and Barclays Sustainable Impact Capital, with additional backing from Par Equity, Northstar Ventures, the Low Carbon Innovation Fund 2, and Turquoise Capital.

The company will use the capital to expand manufacturing operations at its facility in the North East of England and establish a global sales footprint. The investment will also support research and development efforts for its passenger vehicle motor technology, aiming to reduce the environmental impact of the electric vehicle sector.

Formed as a spin-out from Newcastle University, Advanced Electric Machines develops powertrain systems that eliminate the reliance on copper and rare-earth magnets. The latest financing will enable the business to meet growing international demand across transport markets in Europe, North America, and the Asia Pacific region.

From the founder

"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."

James Widmer

CEO and co-founder at Advanced Electric Machines

Investor perspective

"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."