Melbourne startup banks $2 million to scale electric motor core technology production

Victorian startup Kite Magnetics has been awarded $2 million for the pilot production of its patented motor core technology, which has the potential to improve electric vehicle (EV) efficiency and reduce battery, cooling and broader system costs.

Supported by the federal government’s Industry Growth Program, the funds will back a $4.1 million commercialisation project of its patented nanocrystalline motor core technology called Aeroperm.

It will also facilitate continued supply of samples and paid prototypes to more than 20 organisations, including global original equipment manufacturers (OEMs), Tier 1 and Tier 2 suppliers, and electric-mobility partners. 

Aeroperm is designed to replace conventional electrical steel in electric-motor stator cores, and under specified operating conditions reduce stator-core losses by up to 97% compared to conventional electrical steel. 

By reducing wasted energy and heat inside the motor, Kite says Aeroperm can help electric vehicle manufacturers improve efficiency, reduce cooling requirements and lower battery and system weight and cost without requiring a full motor redesign.

Kite says Aeroperm is the only nanocrystalline soft magnetic material that can offer this instant efficiency upgrade without compromising motor torque.

For EV manufacturers, the company estimates Aeroperm can enable battery and system cost reductions of up to approximately $1,140 per vehicle, equivalent to up to $1.14 billion per million vehicles produced, depending on the vehicle platform and motor design.

Kite Magnetics Founder and Chief Executive Officer Dr Richard Parsons said most EV range increases are fought for at the battery pack, software or power electronics level.

“We are attacking a more fundamental source of loss: the magnetic material inside the motor,” Parsons said.

“Electric motors are one of the most important technologies in the electrification economy, with electric motor-driven systems accounting for around half of global electricity consumption, but the materials inside our motors have not fundamentally improved in decades.”

Parsons added that Aeroperm gives motor manufacturers a practical way to reduce losses and improve efficiency without having to completely redesign existing motor platforms.

The new funds will help Kite advance Aeroperm from technology readiness level 4 to level 6, a key step towards commercial adoption in automotive and other high-efficiency motor applications.

$22 million series A financing round

Kite Magnetics is also preparing for $22 million Series A financing to scale manufacturing, complete customer qualification and progress towards volume supply programs.

“We have a novel patented materials platform, active engagement with dozens of global OEMs and Tier 1 and 2 suppliers, government-backed commercialisation support, and a clear pathway to scale the world’s only nanocrystalline stator core production process”, Parsons said.

“We are now working to scale the business so that we can deploy as many Aeroperm stator cores into motors as possible”.

The company is a Monash University spin-off, co-developed by founder and CEO Dr Richard Parsons, and Professor Kiyonori Suzuki following more than a decade working together in the Department of Materials Science and Engineering. 

Kite Magnetics is backed by investors including SQM Lithium Ventures, Investible and Innovation Victoria.