Magnomatics, a British company that develops magnetically coupled gears, couplings and geared motors, has raised £2.5m to develop light, quiet, efficient direct-drive motors for the hybrid and electric vehicle market. The Sheffield-based company, which was spun out of the University of Sheffield in 2006, designs and builds novel magnetic transmissions and compact, high-efficiency motors and generators for global customers including Ford and Caterpillar.

“The investment will not only allow us to grow our team of internationally renowned experts, but will allow us to take our fully proven magnetic transmissions and ultra-efficient motors through to mature product offerings,” says Magnomatics’ managing director, Chris Kirby. “We will also be able to vigorously pursue and progress our international opportunities, ensuring that our ground-breaking technology has real impact in a number of diverse national and international markets”.

IP Group has invested £1.06m with Finance Yorkshire providing matching funding, while Fusion IP has invested £366k. The first tranche of funds, totalling £2.25m has already been invested. A second tranche of £246k depends on certain milestones being achieved. When the full £2.5m funds have been invested, Fusion IP’s shareholding will be 31%.

“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,” says Fusion IP’s CEO, David Baynes. “We look forward to working with the management team and new investors, as Magnomatics brings these novel systems to market.”