Advanced Electric Machines Group (AEM), a Washington-based manufacturer, has secured a £16m funding deal to accelerate the development of its rare-earth-free electric motor technology. The investment is expected to create more than 20 skilled jobs at its Teal Farm Way facility.
Funding to boost product development and job creation
The funding round was led by existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures, and the Low Carbon Innovation Fund, with additional participation from new investors. Loan support from Innovate UK complements the capital injection, which will finance the expansion of AEM's facilities, expertise, and production capacity.
Founded in March 2017 by Dr James Widmer and Dr Andy Steve, AEM emerged from the Centre for Advanced Electrical Drives at Newcastle University. Within two years, the centre had attracted over £25m in investment to develop and expand its technologies. AEM now employs over 60 people and manufactures electric motors that eliminate the need for permanent magnets and rare earth materials, substituting copper windings with aluminium.
Addressing supply chain challenges with innovative technology
AEM's motors enable customers to mitigate supply-chain risks while delivering competitive performance, efficiency, and cost, alongside reduced weight and greater recyclability. Amid growing global uncertainty, rare materials are becoming increasingly difficult to source, prompting businesses to seek alternative solutions. AEM's technology uses readily available materials to address these challenges.
The technology is applicable across various sectors, including passenger cars, motorcycles, all-terrain vehicles, trucks, buses, construction machinery, and the marine industry. The fresh investment will drive development of AEM's next-generation high-torque motor platform, broadening its established technology into more demanding commercial vehicle and industrial applications.
Job creation and future growth
In the short term, AEM anticipates adding several engineering roles to support the development of its next-generation motor platform. As new products move into production and customer demand increases, the company believes the investment could support the creation of more than 20 additional positions spanning engineering, manufacturing, and supply chain functions.
Dr Widmer said: "OEMs are increasingly looking for motor technologies that can deliver performance, cost competitiveness, and manufacturing scalability without dependence on rare earth materials and magnets. Our technology has already demonstrated that this is possible in production environments."
He added: "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 the field and designed to help customers strengthen supply-chain resilience while meeting increasingly demanding performance requirements."
Investor confidence in regional champion
Greg Debicki, director principal Investments at Barclays Climate Ventures, said: "We are delighted to support AEM, a leading UK manufacturer based in the North East, whose growth highlights the important role UK technological innovation can play in supporting the global transition to electrification. Developed at Newcastle University, their innovative motor platform has the potential to support businesses around the world, while reinforcing the UK's reputation for advanced engineering."
Andrew Noble, chief operating officer at PXN Group, said: "AEM is tackling one of the hardest and most important problems in the electrification of transport: how to build motors that perform better, cost less, and don't rely on rare earth supply chains outside of the UK and Europe. James and the team have demonstrated the engineering depth to turn that vision into a serious industrial business, and this round is a real vote of confidence in the progress they've made."
Alex Buchan, investment director at Northstar Ventures, said: "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."
The new motor platform will complement AEM's existing HDRM commercial vehicle portfolio and strengthen the company's wider product roadmap, which also includes its SSRD technology for passenger vehicle applications currently progressing through OEM development programmes.
