by 2 minutes Read (Reuters) – BERKELEY, Calif., June 30 (Reuters) – Turntide Technologies, a firm in the United States that develops energy-efficient electric motors without rare earth metals, has secured $225 million, demonstrating increased investor interest in climate technology startups. Rare earth-based magnets are used in electronic vehicle motors by most automakers, including Tesla. However, raw materials are expensive, and processing them can be harmful to the environment, and China dominates production, making Western corporations fearful of pricing or supply shocks. Turntide Chairman and CEO Ryan Morris told Reuters that companies that rely on rare earth minerals are taking a “big risk.” “Electric motors for automobiles are in high demand. The supply (of raw materials) is not growing at a rapid pace. With the shortage of those minerals, I believe you’ll approach a tipping point in the next three to four years “he stated Turntide’s electric motors are designed to circulate air efficiently in Amazon’s and other customers’ buildings. “Because of pandemics, demand for greater air quality has skyrocketed,” Morris added. Motors are also produced for Volkswagen’s MAN division’s commercial vehicles and Aston Martin’s supercars. With the purchase of two U.K.-based companies, Hyperdrive and BorgWarner’s engineering technical center division, the company secured a foothold in the transportation sector this month. According to him, the new funding, which included a contribution from the Canada Pension Plan Investment Board, enabled the acquisition to be completed. The investment increases the California-based company’s total capital to $400 million, with money supported by Microsoft co-founder Bill Gates, Iron Man actor Robert Downey Jr, Amazon, and BMW among its backers. (Hyunjoo Jin contributed reporting, and Barbara Lewis edited the piece.) Continue reading
