The National Reconstruction Fund Corporation (NRFC) has made its first investment in the transport sector, 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. The company’s current fleet of 20 vehicles operates in dust suppression for mining customers and inter-factory logistics for manufacturing clients.
NRFC chief executive David Gall says AEV represents an Australian success story since its founding in 2015. “By focusing on autonomous electric vehicles for industrial use, it has created a sound and scalable business model,” Gall says.
“Its proprietary digital control system is made up of a combination of electronics and software that allows autonomous electric vehicles to be operated to the highest global safety standards in conditions that are remote and hazardous for human drivers.”
The company’s Generation 6 Blanc Robots feature a cab-less design and flat chassis that can be configured for multiple use cases. AEV has 100 sixth-generation vehicles ready for deployment, representing a significant scale-up in an industry where most operators remain in pilot mode.
Manufacturing and job creation
Under AEV’s current manufacturing plan, 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 NRFC investment will support AEV’s existing 113 employees and create up to 25 new skilled trade, technical and commercial jobs in Melbourne.
AEV chief executive and co-founder Julian Broadbent says the investment validates the company’s original vision. “When traditional automotive manufacturing left Australia, we saw an opportunity, tapping into the wealth of local engineering talent and building something truly innovative from the ground up,” Broadbent says.
“Today, that vision is delivering real-world impact, placing Australian-developed technology at the forefront of the autonomous transport revolution.”
Commercial partnerships drive growth
The Series B round attracted Japan Post Capital, the venture arm of Japan’s postal service, with Japan Post emerging as an early customer. The partnership could accelerate deployment of AEV’s driverless delivery vehicles onto public roads.
Broadbent says the company has been profitable for three years, operating on a lease and licence model. Japan Post operates a fleet of more than 80,000 vehicles, presenting significant scaling opportunities.
“We’re looking at very low-speed urban work with them,” Broadbent says. “They have big challenges in a lot of cities in Japan due to reductions in populations. We’re using this to solve a problem where there aren’t any drivers in the town to be able to do all of the jobs that this company needs to do.”
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.
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.
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