EVO Electric, a developer of advanced electric drive solutions for the automotive sector (earlier post), has formed a joint venture with GKN Driveline, part of GKN plc, to develop, manufacture and sell Axial Flux electric motors and drive systems for use in hybrid and electric vehicles.
As part of the agreement, GKN will also acquire a 25.1% stake in EVO Electric. GKN will provide financing in a combination of debt and equity together with engineering and commercial resources to enable the establishment and growth of the joint venture. The total value of GKN’s investment at closing is £5 million (US$8.1) consideration in cash.
The joint venture will be headquartered in the UK and will leverage advanced technology and expertise in hybrid, plug-in hybrid and electric drivetrains from both partners.
The joint venture—known as GKN EVO eDrive Systems—aims to capture a share of the rapidly growing market for hybrid and electric vehicle systems. According to a recent study by McKinsey & Co consultants, the global market for electric motors alone could be worth more than €20 billion (US$28.9 billion) by 2020.
EVO Electric was spun off from Imperial College London in 2006 with financial backing from investors including Imperial Innovations. Since then, the company has established itself as a supplier of high-torque, high-power motors, generators and integrated drive systems to manufacturers including Jaguar Land Rover, Lotus Cars, Nissan and a range of other clients in the automotive, military and marine industries.
EVO Electric’s Axial Flux technology offers a combination of weight, volume, efficiency, control and manufacturing advantages, which in turn translate into lighter, smaller and more efficient hybrid and electric drivetrains.
GKN Driveline is already a developer and supplier of eTransmissions and eAxles for hybrid and electric vehicles. This venture will enable GKN Driveline to offer advanced Axial Flux motors and generators, adding to its existing eDrive Systems portfolio and enhancing its capability in full driveline systems.
EVO Electric was advised on the transaction by Ascendant Limited.