Investment Notes: Kite Magnetics

After first backing Kite Magnetics in 2022 (read the investment notes here), we are pleased to announce our follow-on investment into their Seed+ round. The round was led by SQM Ventures, who invested AUD 3.6m, the corporate venture arm of Sociedad Quimica y Minera, and saw continued support from Boson Ventures, Breakthrough Victoria and Monash University.  

This capital will enable Kite Magnetics to:

1. Accelerate global adoption through the establishment of prototype supply agreements

2. Scale production through the establishment of a pilot scale production facility, and

3. Enter the next stage of commercial growth with tier-one partners.

In this investment note, I’ll share why we’ve strengthened our conviction in Kite Magnetics by joining their latest round, and why we believe Richard and his team are building are building something truly transformational.  

The Magnetic Advantage: Unlocking Lighter, More Efficient Motors  

At the core of Kite Magnetics’ breakthrough is Aeroperm: a cutting-edge nanocrystalline magnetic alloy developed at Monash University culminating over 30 years of research.  

This advanced material enables electric motors that are:

1. Up to 25% more efficient,

2. Up to 50% lighter, and

3. 97% lower losses In a motors stator core

By overcoming longstanding limitations in magnetic core performance, Aeroperm sets a new standard for electric propulsion, across aviation, EVs, and beyond.  

This high-impact materials innovation with deep technical defensibility and significant commercial potential.  

Expanding Aeroperm’s Reach into High-Growth Electric Motor Markets

Our initial thesis focused on the electric aviation, a sector we believed was ripe for transformation. But, while the ambition is clear, the path has proven slower than expected, highlighted  by the fact that only one fully electric aircraft has been certified globally by EASA since 2020.

Progress is coming. Momentum from players like SAFRAN and MagniX, and regulatory advances from EASA and the FAA (including recent approvals for eVTOLs and electric motor programs), suggest the tide is turning. Kite Magnetics is well positioned, having already built a 120kW electric propulsion prototype aimed at replacing piston engines in 2–4 seater light aircraft.

But it’s what came next that truly caught our attention.

As we deepened our involvement, it became clear: the more immediate and scalable opportunity lies in the global demand for high-efficiency electric motors, across EVs, industrial systems, and HVAC.

Despite underpinning nearly all modern electric machines, magnetic cores today still rely on iron-silicon steel tech from the 1930s. These legacy materials are outdated, responsible for up to 50% of power losses in electric motors, and act as a key bottleneck to performance.

This is where Aeroperm changes the game.

Kite Magnetics’ nanocrystalline alloy, born from 30+ years of research at Monash University, offers:

• 97% lower core losses

• Up to 25% higher efficiency

• Up to 50% weight reduction

It’s the kind of leap needed to unlock the next generation of high-performance motors, not just for aircraft, but for nearly every electrified sector.

This insight led Kite Magnetics to shift focus. Since then, they’ve seen strong traction from leading automotive motor manufacturers, with multiple NDAs signed to join their Aeroperm Early Access Program. These partners are now running simulations to test Aeroperm’s impact on their next-gen designs.

Our conviction has only grown. As the world electrifies, we believe the future of propulsion, and performance, starts at the core.

Scaling the science beyond the lab bench to pilot line to commercialisation

Since our initial investment, Kite Magnetics has made meaningful technical and manufacturing strides, evolving from a coin-sized motor prototype using Aeroperm at TRL 2 to achieving TRL 4, with a production capacity of 0.5 tons per year.  

On the manufacturing front reflecting growing readiness to scale. These parallel advancements underscore the team’s ability to execute across both R&D and production.

Originally targeting a 25–65 kW prototype, the team exceeded expectations with the KM-120, a 120 kW electric propulsion unit capable of replacing piston engines in 2–4 seat aircraft.  

The first prototype has successfully completed initial testing, with two additional units now assembled and awaiting final balancing. Full testing will resume following the Seed+ round, as the team shifts focus towards unlocking opportunities in the automotive sector.

“This funding allows us to scale production of the world’s only drop-in nanocrystalline magnetic material that upgrades electric motor efficiency and delivers it to EV and aerospace customers globally. Investible’s support, both in Australia and abroad, has been instrumental in helping us turn deep tech into commercial traction.” -Richard Parsons, CEO and founder of Kite Magnetics

Richard has grown Kite Magnetics to a 13-person team, including recent strategic hires: Torben Prahl as the Supply Chain Director and  Liz Williams as the Chief of Staff—strengthening the company’s foundation for its next stage of growth.  

With deep technical differentiation, a clear commercialisation pathway and rising global interest from motor manufacturers, Kite Magnetics is well-positioned to lead the next wave of electric propulsion.  

We’re proud to continue backing this team—and thrilled to welcome SQM Lithium Ventures on the journey as a strategic partner in building a cleaner, electrified future.

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