Conifer Secures $20M Seed Funding for Electric Hub Motor

A New Startup, Conifer, Reimagines Electric Hub Motors

Several former engineers from Lucid Motors and Apple’s electric vehicle initiative have collaborated to establish a new company focused on innovative electric hub motor technology.

Conifer has engineered a motor design that eliminates the need for rare earth elements. This is achieved through the utilization of readily available ferrite magnets, a decision that the company asserts will both lower production costs and mitigate potential supply chain vulnerabilities.

Proprietary Stator Design and Funding

Furthermore, Conifer claims its unique stator configuration delivers enhanced efficiency and power output compared to existing alternatives. Notably, it achieves this with a significantly reduced size – half that of comparable motors.

The company’s launch coincides with a period of increased geopolitical uncertainty and trade tensions. This timing has proven beneficial, attracting substantial investment. Conifer successfully secured a $20 million seed funding round, backed by prominent deep tech investors like True Ventures, MaC Ventures, and MFV Partners. Rohit Sharma of True Ventures has also joined Conifer’s board of directors.

Advancements in Electric Motor Technology

Conifer’s emergence occurs during a time of rapid progress in electric motor development.

Companies such as Germany’s DeepDrive and Finland’s Donut Lab are pioneering novel approaches to enhance the efficiency, power, and affordability of electric motors. This innovation is particularly relevant as battery costs – typically a major component of EV expenses – are stabilizing, with dramatic price reductions becoming less frequent.

Initial Target Market and Applications

Conifer is initially concentrating on the small mobility sector with its “drop-in” hub motor. This design allows for easy replacement of existing hub motors without requiring extensive modifications to vehicle designs.

The company is targeting both on- and off-road vehicles with two, three, or four wheels. Beyond transportation, Conifer has identified potential applications in lawnmowers, tractors, and even HVAC systems.

They already have several global customers and anticipate commencing production motor shipments later this year.

Addressing a Gap in Powertrain Innovation

Ankit Somani, a co-founder of Conifer, expressed his dissatisfaction with the limited investment and innovation within the electric motor industry. While not directly involved in EV manufacturing previously, he closely followed the sector as an enthusiast.

“A significant amount of investment was directed towards battery technology – encompassing cathodes, anodes, and electrolytes. However, insufficient attention was given to the powertrain itself,” Somani explained. “We recognized this as a market opportunity, a space where deeper consideration was needed from the outset.”

Localized Supply Chains and Automated Manufacturing

This perspective led to Conifer’s unique motor design and its manufacturing strategy. By utilizing more commonly available magnets, the company aims to establish localized supply chains near its manufacturing facilities.

Conifer also intends to implement a high degree of automation in its manufacturing processes, enabling the production of various motor sizes on a single production line.

Microfactory Approach and Risk Mitigation

The concept of a highly automated, localized “microfactory” has been explored by companies like Arrival, which ultimately ceased operations before fully realizing this vision.

Somani believes Conifer’s motors are significantly less complex than those found in automobiles, reducing the risks associated with this approach. The company plans a phased introduction of automation, initially focusing on subsystems like the stator, rather than attempting full automation immediately.

“This is the core principle guiding our development,” he stated. “We will begin in one country, demonstrating the feasibility of this model, and then expand to other locations based on local demand.”

Focusing on the Value Proposition

Regarding sales, Somani has found that downplaying the intricacies of Conifer’s technology and emphasizing its practical benefits is more effective. As a startup, the company recognizes that larger, established businesses are often hesitant to take risks on unproven ventures.

Therefore, he highlights the “drop-in” nature of Conifer’s motor.

“Customers can replace their existing wheel and hub motor with our product and immediately experience a 10% improvement in range. That’s the core value proposition. Discussions about cost and other details follow,” he concluded.