Electrification company to scale up North East operations with $80m funding

A global electrification technology company has secured $80m (£66.5m) in equity funding which will enable it to scale up its existing North East operations.

Turntide Technologies secured the funding which values the company at more than $1bn.

The business has invested more than $100m in the UK, employing 268 staff across the region after acquiring Sunderland-based based Hyperdrive Innovation, BorgWarner Gateshead and Cramlington-based AVID Technology in the last 12 months.

It is now planning to grow its Sunderland and Gateshead operations and incorporate into its EV offering a version of its patented environmentally friendly switched reluctance motor, which is used for built environment applications such as HVAC systems.

Its aim is to scale up EV powertrain products with minimal impact on the environment.

Turntide’s SRMs are manufactured with common materials, avoiding the rare earth metals that power permanent magnet motors and are environmentally destructive to mine.

The technology shrinks the environmental footprint of the motors and reduces supply chain disruptions.

Turntide chief executive and chairman Ryan Morris said: “This latest round of funding will support the integration of our motors into our UK-based EV powertrain offering that will be exported worldwide to support our collective net-zero targets. The confidence of our investors is a major endorsement of our vision and technologies, highlighting our ability to raise money in a challenging economic environment.

“Limited supplies of rare earth metals like neodymium are significant and growing roadblocks to decarbonising vehicles. Turntide is leading the way in applying magnet-free SRMs to the built environment, and we envision this superior motor technology will accelerate the electrification of all forms of vehicles.”

The round includes new investments from OGCI Climate Investments (OGCI CI) and SDCL Energy Efficiency Income Trust (SEEIT), with follow-on investments from Fifth Wall and Meson Capital’s Captain Planet LP fund.

The funding brings the total amount of capital raised to $485 million. Turntide is also backed by a global coalition of climate-focused investors, including Amazon Climate Pledge Fund, JLL, BMW i Ventures, Breakthrough Energy Ventures, Canada Pension Plan Investment Board, Robert Downey Jr.’s FootPrint Coalition, and Keyframe Capital.

Morris added: “Addressing climate change is more urgent than ever, and we are grateful to work with an investor base that is committed to achieving meaningful, near-term emissions impact.”

“Even in the face of global economic uncertainty and supply chain upheaval, the market demand for Turntide’s sustainability solutions has enabled us to secure new investments. This capital will accelerate and further scale our efforts to decarbonise the world’s most energy-intensive industries.”

“Turntide is tackling challenges that are seemingly insurmountable,” said Greg Smithies, partner and co-lead of the climate investment team at Fifth Wall, adding: “Decarbonising the world’s economies requires a transformation of industrial and commercial systems, and Turntide delivers solutions that optimise energy use within these systems.”