The corporate venture capital arm of global producer SQM International Lithium has backed Melbourne-based startup Kite Magnetics with a direct investment of $3.6 million in the electric-motor technology company.
The investment by SQM Lithium Ventures is part of a broader oversubscribed seed-plus round by Kite Magnetics, which will use the funds to launch pilot production of Aeroperm, a patented stator core material that reduces energy losses in electric motors by up to 97 per cent.
Described as a “world-first drop-in replacement for electric steel”, Aeroperm boosts an electric vehicle’s range, lowers manufacturing costs and could potentially unlock billions in industry-wide savings.
Spun out of Monash University in 2021, Kite Magnetics plans to scale production in Victoria to serve a growing global customer base.
The company develops and manufactures stator cores, a key component found at the heart of electric motors and generators that are used in agriculture, mining, manufacturing, power generation, household appliances and transport.
Kite Magnetics' stator cores are the first in the world to directly replace existing electric steels with a new nanocrystalline magnetic material.
Kite Magnetics has not disclosed how much was raised in the seed-plus round, but SQM Lithium Ventures’ $3.6 million (US$2.2 million) play has been lauded as the first venture investment in Australia by the Chile-headquartered group.
The seed-plus round was also supported by Breakthrough Victoria, Investible, Boson Ventures and Monash Investment Holdings.
"We are excited to partner with SQM Lithium Ventures, alongside our other investors,” says Dr. Richard Parsons, CEO of Kite Magnetics.
“Their support will help us scale our technology to revolutionise EVs. By increasing range and reducing mass, we’re not just making electric vehicles drive further, we’re making them cheaper and more sustainable, accelerating adoption."
The latest funding round will be used to build pilot production facilities for Aeroperm, make key strategic hires and expand the startup’s global presence.
Mark Fones, CEO of SQM International Lithium, describes Kite Magnetics as a company at the “forefront of innovation in electromobility and technology that increases the efficiency of electric motors”.
“This investment not only reflects our commitment to innovative and sustainable technologies but also strengthens our presence in Australia, a key market where we already have active operations and trusted local partners,” says Fones.
“We believe Kite Magnetics' groundbreaking advancements will have a significant impact on the industry, and we are excited to support their journey as they scale globally from such a strategically important region.”
SQM Lithium Ventures invests in scalable technology-based businesses that are solving problems related to the lithium value chain, including processes related to lithium production, electromobility, batteries and energy storage, and recycling.
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