New jobs to be created at pioneering North East firm after £16m funding deal
The Newcastle University will soon be recruiting into new engineering, manufacturing and supply chain roles16:35, 04 Aug 2026AEM in Washington has announced a £16m funding deal which will create a raft of. . .
The Newcastle University will soon be recruiting into new engineering, manufacturing and supply chain roles16:35, 04 Aug 2026AEM in Washington has announced a £16m funding deal which will create a raft of skilled jobs(Image: Google Earth)A Newcastle University spin-out has sealed a £16m funding deal which will see it ramp up development of new electric motors and createnew skilled jobs. Advanced Electric Machines (AEM) was founded in March 2017 by Dr James Widmer and Dr Andy Steve – who were part of the pioneering Centre for Advanced Electrical Drives atNewcastle University. The centre was responsible for the development of new electricmotortechnologies, with its work including helping a global auto manufacturer to build its first electric vehicle and enabling a leading aerospace corporation to complete the world’s longest self-powered flight. Within two years of spinning out of Newcastle University to its base inWashington, the business had secured more than £25m of investment to continue developing and expanding its technologies. Today AEM employs more than 60 people at its base in Teal Farm Way, where it makes electric motors which are free of rare earth material and magnets. And it has now announced a £16mfundingdeal which will see it accelerate expansion of its product portfolio and development of new electric propulsion solutions – a deal which is expected to create more than 20 new jobs. The funding round was led by existing shareholders Barclays Climate Ventures, PXN Ventures, Northstar Ventures and the Low Carbon Innovation Fund, alongside participation from new investors. The investment is complemented by loan support from Innovate UK, and will fund expansion of AEM’s facilities, expertise and production capability in Washington. The company’s motors eliminate the need for permanent magnets and rare earth materials, including the replacement of copper windings with aluminium. That helps customers reduce supply-chain risk while delivering competitive performance, efficiency and cost with reduced weight and improved recyclability. Advanced Electric Machines Group (AEM) has sealed a £16m funding deal. (Image: Advanced Electric Machines Group)On the back of global uncertainty, rare materials are getting harder to find, and there’s a greater push for recycling, meaning companies are looking for new kinds of electric motors. AEM’s technology solves these problems by using widely-available materials, while still providing the high performance, affordability, and reliability that major manufacturers need. Its tech can be used in passenger cars, motorcycles, all terrain vehicles, the full range of trucks, buses and construction machinery and also the marine sector. The investment will support development of AEM’s next-generation high-torque motor platform, extending the company’s existing technology into more demanding commercial vehicle and industrial applications. A spokesman said that, in the near term, AEM expects to add several engineering roles to support development of its next generation motor platform. Looking further ahead, as new products move into production and customer demand grows, they believe the investment could support the creation of more than 20 additional positions across engineering, manufacturing and supply chain functions. Dr Widmer said: “OEMs (original equipment manufacturers) 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. “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. “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. ”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. Northstar Ventures has worked with AEM through its evolution and has always been committed to backing the companies whose technologies will be the driver of future prosperity. ”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. "This investment will help accelerate AEM’s growth and we are glad to support the expansion of this regional champion. ”Article continues belowDid you know you can make ChronicleLive a preferred source of North East news in Google, which will mean you get more of our breaking news, exclusives, and must-read stories straight away?Here's more informationabout what this means and how to do it - you can also do it straight away byclicking here.