Motiv Power Systems has secured US$15m of additional funding from GMAG Holdings.
Motiv Power Systems is a sustainable technology company delivering all-electric chassis with a software platform for the electrification of medium-duty trucks and buses.
The funding will be made by means of convertible notes that are expected to be converted into a Series C funding round, which Motiv is in the process of raising.
With the new financing, Motiv aims to further scale its manufacturing operations, as well as fund technology and geographic expansion.
“Despite the challenges created by the current pandemic, Motiv’s progress continues at an impressive upward trajectory,” said GMAG Holdings CFO, Matt Gallaher.
“We see great potential in the company’s future as the leading player in the commercial EV space.”
The new funding comes as the commercial EV market is gaining momentum, as fleet owners look to meet new regulations, reduce costs, and answer social pressures for cleaner transportation options.
As an example, the California Advanced Clean Truck rule, implemented by California’s Air Resources Board, mandates 50% of lorries sold in California must be zero-emissions by 2035 and 100% by 2045.
“This funding demonstrates the sustained commitment of GMAG Holdings, Motiv’s largest investor, to support our growth,” added Motiv chairman and CEO, Matt O’Leary.
“Our progress with down costing, investment in a strong customer support team and a proven fifth generation technology have resulted in some 200 vehicle orders, more than half of which are repeat orders.”
In April, Motiv celebrated 1m electric miles logged among several of the largest fleets in North America, equating to 900 plus metric tons of greenhouse gas (GHG) eliminated, the equivalent to 213 passenger vehicles driven for one year.
“Time and again, our customers give Motiv high marks on their vehicle performance across a range of diverse medium-duty vehicles, from trucks and buses, to speciality vehicles and shuttles,” noted O’Leary. “We leverage this feedback into higher-performing and even more-reliable and lower-cost products with every generation.”
Motiv says it is well positioned for growth with its proprietary AdaptEV software platform, patented power electronics and truck and bus body partners.