Japanese automaker Suzuki has taken a major financial stake in Australian autonomous electric vehicle tech outfit Applied EV, in a bid to fast-track the development of “next generation” e-mobility.
The two companies said on Tuesday that Suzuki had made a strategic investment in Applied EV as part of a $21 million funding round, roughly one year after agreeing to collaborate with the Melbourne-based AI software company.
Applied EV is developing software known as the Digital Backbone, which enables EVs to run entirely on a digital platform, thus simplifying vehicle architecture, removing hundreds of components, reducing production costs and increasing efficiency.
This platform was put to the test in June, in a zero-occupancy, all-electric, fully autonomous vehicle called the Blanc Robot, through a partnership with Oxbotica, the Oxford University-based outfit that specialises in autonomous vehicle software.
Suzuki says its unquantified investment in Applied EV this week marks another step to strengthen the relationship between the two companies and realise synergies like manufacturing and new business models.
Applied EV says the investment by Suzuki strengthens the “mutually beneficial” alliance between the two companies, including Suzuki’s experience in building high quality and efficient vehicles.
“Suzuki is a highly respected automotive company, delivering millions of vehicles to customers globally,” said Applied EV co-founder and CEO Julian Broadbent.
“With over 100 years of expertise, strong values, and a huge market, we’re excited to see what the future will hold,” he said.
For its part, Suzuki says will continue to build relationships with companies like Applied EV that offer unique technologies to help accelerate the development of “a variety of transport solutions that will benefit people and society.”
According to reports, Applied EV had been planning an initial public offering this year, but has hit pause on those plans to focus on raising new fundraising and strengthening collaborative partnerships.
The AFR reports that the company is still considering going ahead with an IPO in early 2023, depending on market conditions.
Suzuki has been somewhat slow to the electric vehicle scene, announcing plans in July of 2021 to launch its first electric car by fiscal year 2025 in its largest market, India, before launching in Japan and Europe.
Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.