News & Resources

SQM LITHIUM VENTURES INVESTS AU $3.6M (US $2.2M) IN EV MOTOR TECH STARTUP KITE MAGNETICS (AUSTRALIA)

Monday 19th May, 2025 – SQM Lithium Ventures is proud to announce its investment in Kite Magnetics, an Australian startup based in Melbourne, Victoria. Kite is producing advanced magnetic materials for high efficiency electric motors and generators. The investment is part of Kite Magnetics’ oversubscribed Seed+ funding round, led by SQM Lithium Ventures, corporate venture capital team affiliated with SQM International Lithium (SQMi), a global leader in lithium production.

Kite Magnetics develops and manufactures stator cores, a key component found at the heart of electric motors and generators that are used in agriculture, mining, manufacturing, power generation, household appliances and transport. Kite Magnetics' stator cores are the first in the world to directly replace existing electric steels while reducing core losses by up to 97% use a new nanocrystalline magnetic material. This groundbreaking patented technology, known as Aeroperm®, significantly increases the efficiency of electric motors, enabling electric vehicles to travel farther on a single charge. These efficiency gains can reduce the cost of producing each EV by hundreds of dollars, translating to billions in savings for manufacturers across the industry, while also cutting operating costs in stationary applications like mining.

The Seed+ round marks a significant milestone for Kite Magnetics, which spun out from Monash University in Melbourne, Victoria, Australia in 2021. As part of a larger round, SQM Lithium Ventures has directly invested AUD 3.6 million (USD 2.2 million), making it the company’s first venture investment in Australia. Together with commitments from other investors, this funding will enable the company to build pilot production facilities for Aeroperm®, make key strategic hires, and expand its global presence to better serve customers around the world.

Dr. Richard Parsons, CEO of Kite Magnetics says, "We are excited to partner with SQM Lithium Ventures, alongside our other investors. Their support will help us scale our technology to revolutionize EVs. By increasing range and reducing mass, we’re not just making electric vehicles drive further we’re making them cheaper and more sustainable, accelerating adoption."

Mark Fones, CEO of SQM International Lithium, says, "We are happy to announce our investment in Kite Magnetics, a company at the forefront of innovation in electromobility and technology that increases the efficiency of electric motors. This investment not only reflects our commitment to innovative and sustainable technologies but also strengthens our presence in Australia, a key market where we already have active operations and trusted local partners. We believe Kite Magnetics' groundbreaking advancements will have a significant impact on the industry, and we are excited to support their journey as they scale globally from such a strategically important region.”

About Kite Magnetics

Kite Magnetics is enabling electric vehicles to travel further and cost less through Aeroperm™, a groundbreaking nanocrystalline magnetic material that makes electric motors and generators smaller, lighter and more efficient. Kite’s proprietary materials technology reduces energy losses in stator cores by up to 97% while also being the world's first material of its type to allow direct replacement of stator cores with no loss of performance. Founded in 2021, Kite has progressed from lab research to prototype production and is securing partnerships with leading global OEMs across the automotive, mining and dual-use sectors. Backed by SQM Lithium Ventures, Investible, and Breakthrough Victoria, Kite Magnetics is now establishing a pilot scale production facility in Victoria, Australia, to meet growing global demand.

About SQM Lithium Ventures

SQM Lithium Ventures is the corporate venture capital arm of SQM International Lithium (SQMi). The Ventures team invests in scalable technology-based businesses around the world solving problems related to the lithium value chain, including processes related to lithium production, electromobility, batteries and energy storage, and recycling. The fund typically invests in series A, A+ and B rounds, with an average ticket size of US$ 3-5 million, plus follow-on investments. In addition to Kite Magnetics, the fund’s portfolio includes Altilium Clean Technology (UK), Electric Era (USA), Movener (Chile), Salinity Solutions (UK), Kite Magnetics (Australia) and Terraline (USA).

SQM Lithium Ventures’ evaluation of Kite Magnetics consisted of several months of diligence and meetings with the team, culminating with an investment committee with participation of SQM's CEO and other key company leaders. SQM Lithium Ventures plans to add value to Kite, taking advantage of parent company SQMi’s global presence and vast expertise across the lithium value chain.