Australian fund backs autonomous vehicle maker with $31m

The National Reconstruction Fund Corporation (NRFC) has made its first transport sector investment, backing Melbourne-based autonomous electric vehicle manufacturer Applied Electric Vehicles (AEV) with a $30.7 million equity stake.

The investment forms part of AEV’s $58 million Series B funding round and will support the manufacture and deployment of the company’s Blanc Robot autonomous electric vehicles for industrial, logistics and commercial applications.

AEV has developed proprietary technology enabling the safe deployment of autonomous electric vehicles in remote and hazardous conditions. Its current fleet of 20 vehicles operates in dust suppression for mining customers and inter-factory logistics for manufacturing clients.

“Applied Electric Vehicles was founded in 2015 and has since grown into an Australian success story,” says NRFC chief executive David Gall.

“By focusing on autonomous electric vehicles for industrial use, it has created a sound and scalable business model.”

Cab-less design targets industrial applications

The company’s Generation 6 Blanc Robots feature a cab-less design and flat chassis that can be configured for multiple use cases. The vehicles are designed to operate in conditions that may be dull, dirty, difficult or dangerous for human drivers.

AEV’s proprietary digital control system combines software and electronics to enable full autonomous control while meeting global safety standards.

“We are honoured to welcome this strategic investment from NRFC,” says AEV chief executive and co-founder Julian Broadbent.

“This support not only accelerates our mission to scale the Blanc Robot and autonomous mobility solutions globally but also validates the vision that brought us here in the first place.”

The NRFC funding represents more than 50% of AEV’s Series B round, with other investors including Barrenjoey and Japan Post Capital. Previous investors include Suzuki Motor Corporation and St Baker.

Manufacturing partnership with Suzuki

Under AEV’s manufacturing model, vehicle chassis are provided by Suzuki Motor Corporation while proprietary electronic components and software are manufactured and installed in Australia to create the autonomous vehicles.

The company has 100 sixth-generation vehicles ready for deployment and plans to scale to thousands of vehicles over the next three to five years.

Japan Post Capital’s investment positions Japan’s postal service as an early customer, potentially accelerating deployment of driverless delivery vehicles on public roads in Japan.

“We’re looking at very low-speed urban sort of work with them,” Broadbent says of the Japan Post partnership.

“They have big challenges in a lot of cities in Japan due to reductions in populations.”

AEV currently employs 113 people and the NRFC investment will support existing jobs while creating up to 25 new skilled trade, technical and commercial positions in Melbourne.

The company has been profitable for the past three years, operating on a lease and licence model.

Gall says AEV’s product pipeline, commercial contracts and partnerships with industry leaders will enable rapid business scaling.

“We are proud to be investing in a company that commercialises Australian innovation, builds the country’s manufacturing capabilities, and creates highly skilled jobs,” he says.

The NRFC has now made 20 investments totalling $1.19 billion from the federal government’s $15 billion sovereign investment fund.