Newcastle firm secures £16m to scale electric motor production

Advanced Electric Machines has obtained sixteen million pounds in equity and loan funding to expand its manufacturing capabilities and advance development work on a new high-torque motor platform. The North East manufacturer intends to utilise the capital for scaling up output at its facility located in Washington, Tyne and Wear.

Established as a spinout from Newcastle University in 2017 by chief executive Dr James Widmer and CTO Dr Andy Steven, the company produces electric motors that do not rely on rare earth materials or permanent magnets. These components are supplied for use in commercial vehicles, passenger cars, motorcycles and maritime applications.

The firm’s proprietary technology substitutes traditional copper windings with compressed aluminium coils to replace heavy rare earth elements. This design approach is claimed by the business to remove reliance on volatile supply chains while enhancing motor recyclability and reducing overall component weight. The fresh investment will support the rollout of its HDRM commercial vehicle platform alongside SSRD motor technology designed for passenger vehicles.

Chief executive Dr James Widmer stated that original equipment manufacturers are increasingly seeking technologies capable of delivering performance, cost competitiveness and manufacturing scalability without dependence on rare earth materials and magnets. He added that this funding enables acceleration of development for the next generation of products while expanding their offering into higher-power applications.

The investment includes equity backing from existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures and the Low Carbon Innovation Fund. New investors have also joined alongside loan financing provided by Innovate UK. Greg Debicki, director principal investments at Barclays Climate Ventures, expressed delight in supporting a leading UK manufacturer based in the northeast whose growth highlights the important role technological innovation can play in supporting the global transition to electrification.

He noted that this investment will help accelerate Advanced Electric Machines’ growth and they are glad to support the expansion of this regional champion. The company aims to utilise these resources to strengthen its position as a key player in sustainable electric mobility solutions across various transport sectors.