AEM Raises £16 Million to Scale Rare Earth-Free, Copper-Free Electric Motors

Advanced Electric Machines Group (AEM), a UK deep-tech manufacturer spun out of Newcastle University in 2017, has secured £16 million in a growth financing round of equity and loan funding to scale production of its sustainable electric motors . The company’s motors use no rare-earth materials, permanent magnets, or copper windings — replacing them with compressed aluminium coils to lower weight, reduce cost, and improve recyclability .

Who Invested

Barclays Climate Ventures led the round, joined by PXN Ventures, Northstar Ventures, and the Low Carbon Innovation Fund . Innovate UK also contributed via a loan facility . The round was supported by existing shareholders .

The Technology: Rare Earth-Free and Copper-Free

AEM’s core innovation is an electric traction motor that eliminates NdFeB magnets and copper windings . By switching to compressed aluminium coils, the motors are lighter and more cost-effective than conventional designs, while also being easier to recycle at end of life . The company says this approach reduces exposure to volatile rare-earth and copper supply chains .

Target Applications

AEM’s motors are designed for primary and secondary drive applications in commercial vehicles, passenger cars, motorcycles, industrial equipment, and marine propulsion . The company already has commercial motors in use in electric buses across Europe, North America, and Asia .

Manufacturing and Job Creation

AEM is headquartered in Washington, Tyne and Wear (Teal Farm Way), where it employs more than 60 people . The £16 million investment will allow the company to broaden its product portfolio and fast-track development of a next-generation high-torque motor platform . The expansion is expected to create more than 20 skilled jobs at the Washington facility .

The Bigger Picture

The funding signals growing investor confidence in alternatives to rare-earth-dependent motor technology. By replacing two traditionally critical materials — rare-earth magnets and copper — with a single, more abundant alternative (aluminium), AEM aims to offer manufacturers a more resilient supply chain without compromising performance.