BMW-backed DeepDrive raises €30M to industrialise ultra-efficient EV motor

German startup DeepDrive has bagged €30mn to scale up its electric motor technology that promises to boost EV range to over 800km — without any changes to battery capacity.

Founded in 2021, DeepDrive claims its dual-rotor motor boasts the highest torque and power density of any EV motor available today. It also has low noise emissions, and is built using far fewer rare earth materials.  

DeepDrive says its technology can make electric cars 20% more energy efficient, enabling automakers to build EVs with greater range at a lower cost.  

DeepDrive is currently co-developing its electric motors with eight  of the world’s 10 largest automakers. The company has raised just shy of €50mn to date. In March last year, it secured €15mn in a Series A funding round led by the venture arms of automotive giants BMW and Continental. 

This latest funding round was led by Leitmotif, an upcoming San Francisco-based VC backed by VW. DeepDrive will use the new cash to build in-house production lines, as it eyes series production of its ultra-efficient electric motors in 2028. 

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“We believe in a collaborative approach, working hand-in-hand with established players to get our motors on the streets,” said Felix Poernbacher, co-founder and co-CEO of DeepDrive.   

EVs need a boost

In Europe, battery-electric cars (BEV) made up 14.3% of all new vehicle sales in 2023, up from just 4% in 2020. Yet, growth has been slower than anticipated. Last year, the share of BEV sales for some carmakers stagnated or even decreased. 

EVs are still costly to produce, and the limited range of many models remains a stumbling block for manufacturers. European carmakers have struggled to compete with cheaper models from China.  

This is driving demand for motors that are smaller, lighter, and more powerful, which is good news for DeepDrive. The company claims that, if deployed at scale, its electric motors can halve the price gap between internal combustion engine vehicles and EVs.