SQM Lithium Ventures, the VC arm of a major international lithium producer, has invested $3.6 million in Melbourne’s Kite Magnetics, a company that produces advanced components for electric motors.
Kite Magnetics CEO Dr Richard Parsons said he was “excited” about the new partnership with SQM.
“Their support will help us scale our technology to revolutionise EVs,” he said.
“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.”
At the heart of the $3.6 million investment is Kite Magnetics’ patented Aeroperm, a nanocrystalline magnetic material engineered to enhance the performance of electric motors and generators by reducing energy losses and improving efficiency.
While EVs are an obvious use for Aeroperm, Kite Magnetics has proven its material can be used to make lightweight motors for airplanes, too.
The company is setting up an advanced manufacturing facility in Melbourne to scale up Aeroperm production to an estimated 50,000 tons per year by 2029 and this latest round of funding will help Kite Magnetics get those production facilities off the ground and hire the necessary staff keep it running.
For SQM Lithium Ventures this is a targeted investment in the EV supply chain of which lithium – a key input for EV batteries – is already a crucial component.
“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,” said CEO of SQM International Lithium, Mark 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.”
Kite Magnetics spun out from Monash University in 2021 and has since been funded through the at-times controversial Breakthrough Victoria. It was also one Sydney-based Investible’s first investments with its early-stage Climate Tech Fund back in 2022.
