A Sheffield technology firm has secured more than £2m funding as it builds its presence in the hybrid electric vehicles market.
Magnomatics, a spin-out company from the University of Sheffield, makes high efficiency, ultra compact motors and generators and magnetic transmission systems.
Finance Yorkshire backed the business with an equity-linked investment of £933,000, while intellectual property investment firm IP Group provided £1.1m finance.
It is the second time the two organisations have invested in Magnomatics, following a £2m package of funding in 2012.
The cash will be used to bring the business’ Magsplit transmission to market for hybrid electric vehicle manufacturers.
The combination of permanent magnet motor and magnet gear is more efficient, smaller and lighter than competitor products, Magnomatics said.
David Latimer, chief executive of Magnomatics, said: “We have built and tested several of the Magsplit in the last two years and have completed Innovate UK projects with Ford and Volvo and we now are at the point where we are attracting global interest.”
The firm is already supplying its products to the renewable energy, aerospace and marine sectors.
Andrew Burton, investment director at Finance Yorkshire, said the funding will allow the “highly innovative” firm to take advantage of opportunities worldwide.
To date, Finance Yorkshire has made 694 investments totalling £90m, creating and safeguarding 9,240 jobs.