An electric motor and powertrain system maker says it is poised to press the accelerator pedal after securing £16 million support.
Advanced Electric Machines has been backed to expand its product portfolio.
Bosses say the cash will spur the “development of a next-generation high-torque motor platform (and) extend its technology into more demanding commercial vehicle and industrial applications”.
They add it will also expand “facilities, expertise and production capability” at the Wearside-based company’s Washington plant, which makes apparatus that replaces traditional copper motor windings with compressed aluminium for cars, motorbikes, trucks, buses and construction machinery.
Its funding round was led by existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures and the Low Carbon Innovation Fund, alongside new investors and Innovate UK loan support.
Dr James Widmer, co-founder and chief executive at Advanced Electric Machines, said: “Manufacturers are increasingly looking for motor technologies that can deliver performance, cost competitiveness and scalability without dependence on rare earth materials and magnets.
“Our technology has already demonstrated this is possible.
“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 support comes after the Newcastle University spin-out unveiled a car maker deal with an Asian operator and a previous £23 million investment round.
Greg Debicki, Barclays Climate Ventures’ director – principal investments, said: “We are delighted to support Advanced Electric Machines.
“Its growth highlights the important role UK technological innovation can play in supporting the global transition to electrification.
“We are glad to support the expansion of this regional champion.”
Alex Buchan, investment director at Newcastle and Sunderland-based investment house Northstar Ventures, added: “The North East has a long-held reputation for producing landmark technological innovations capable of operating in the global arena.
“We have worked with Advanced Electric Machines through its evolution and have always been committed to backing companies whose technologies will be the driver of future prosperity.”
Turquoise International, assisted by Magma International AG, acted as corporate finance adviser on the deal, with Newcastle-headquartered law firm Sintons providing legal counsel to Advanced Electric Machines.
