General Motors Ventures has invested an undisclosed amouint in the NanoSteel Company which specialises in nano-structured light weight steel materials.
Following the development of patented alloys, NanoSteel has created a new class of steel that allows automotive engineers and designers to reduce weight through the use of thinner, higher strength gauges while maintaining the structural integrity needed for safety. The new steel design is described as an alternative to other light weight materials which may cost more, require new investment in parts production and have performance limitations.
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GM Ventures, the GM subsidiary which invests in promising automotive technologies, joined other lead shareholders – EnerTech Capital and Fairhaven Capital Partners – and five existing investors to complete a financing round.
Terms of the investment were not disclosed in a GM statement.
“We are investing in NanoSteel because of the opportunity associated with their new steel alloy technology,” said Jon Lauckner, GM’s chief technology officer and R&D chief who is also president of GM Ventures.
“Over the next several years, ‘light-weighting’ of vehicles will be a major focus area to improve fuel economy. NanoSteel’s nano-structured alloys offer unique material characteristics that are not available today, making them a potential game-changer.”
Reducing vehicle weight is critical if automakers are to achieve higher fuel efficiencies and meet rigorous new US Corporate Average Fuel Economy (CAFE) standards.
Privaely held NanoSteel is based in Providence, Rhode Island, with R&D and engineering facilities in Idaho Falls, Idaho.
