GKN Driveline has formed a joint venture with EVO Electric, a UK operation involved with electric drive solutions for the automotive sector.
The new business, GKN EVO eDrive Systems, will manufacture and sell axial flux electric motors and drive systems for use in hybrid and all-electric vehicles. GKN will also acquire 25.1% of EVO Electric.
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GKN will provide financing in a combination of debt and equity together with engineering and commercial resources.
The total value of GKN’s investment at closing is GBP5m (US$8m) consideration in cash.
EVO Electric develops and manufactures electric machines, hybrid drive trains and generator sets for a wide range of transportation and mobile power applications. The core competence is the design and integration of high torque electric motors and generators based on axial flux technology.
A statement from GKN noted: “This venture will enable GKN Driveline to offer axial flux motors and generators, adding to its existing eDrive Systems portfolio and enhancing its capability in full driveline systems.
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By GlobalData“GKN EVO eDrive Systems aims to capture a share of the rapidly growing market for hybrid and electric vehicle systems. In a recent study by McKinsey & Co, the global market for electric motors alone is estimated to be more than EUR20bn by 2020.”
The joint venture will be headquartered in the UK.
“This alliance with one of the automotive world’s leading Tier One suppliers and a leader in electric-drive axle and transmission technology represents a major break-through for us,” said EVO Electric CEO DAvid Latimer:
“It will be pivotal in establishing EVO as a key player in the fast-growing global market for electric drive components.”
