ELECTRIC motor company Magnomatics has raised £2.5m to complete the development of its magnetically geared motors for the fast-growing hybrid and electric car market.
The Sheffield-based company, which makes high-torque magnetic gearboxes, has 20 contracts with some of the world’s largest transport and engineering firms.
It has secured contracts with Ford and Caterpillar to develop its technology to power their hybrid vehicles.
It offers motor vehicle manufacturers a lighter, quieter, more efficient direct drive motor.
Magnomatics, which was spun out of The University of Sheffield in 2006, is one of Fusion IP’s portfolio companies.
Fusion IP will invest £366,000 while its bigger peer IP Group will invest £1.06m. IP Group’s investment will be matched by Finance Yorkshire.
The first tranche of funds, worth £2.25m, have been invested and the second tranche of £246,000 is dependent on certain milestones.
Once the full £2.5m is invested, Fusion IP’s shareholding will be 31 per cent.
Magnomatics’ chief executive Chris Kirby said: “We are delighted to have the funding we require to expand the business and take our fully proven magnetic transmissions and ultra-efficient motors through to mature product offerings.”
Fusion IP’s chief executive David Baynes said: “This is a major funding for Magnomatics that will enable them to develop their novel magnetic transmissions and compact, ultra-efficient motors for key vehicle markets.
“Magnomatics has made major technological advances over the last two years and has an impressive list of development contracts with many of the world’s leading manufacturers.”
Andrew Burton, of Finance Yorkshire, said: “This is a great example of Finance Yorkshire working alongside other investors to provide companies with the funding needed to help them expand.
“Magnomatics is a high-technology company which has turned ground-breaking research in Sheffield into a commercial enterprise, developing products and services for global customers.”
Magnomatics has appointed ex-Ricardo managing director, Bob Allsopp, as a non executive director.
Magnomatics was spun out from the research group in electrical machines and drives at the University of Sheffield.