General Motors Ventures (GM Ventures), a subsidiary of General motors, has invested in NanoSteel, the company that specializes in proprietary nano-structured steel materials. NanoSteel has engineered a new class of nano-structured steel alloys that impart the necessary structural integrity mandatory for safety and yet is thin and light.
The new class of alloys holds great promise for the automotive industry that has always been striving to produce light-weight vehicles with the aim of enhancing fuel economy. There are very few alternatives that score high on both light-weightiness and strength. But these materials have performance constraints and are expensive as they need new investment for production. Vehicle weight reduction has taken on additional significance to automotive players owing to the high fuel efficiencies mandated by the new, rigorous United States Corporate Average Fuel Economy standards.
GM Ventures, whose sole purpose is to identify promising automotive technologies for investment, has collaborated with lead shareholders Fairhaven Capital Partners and EnerTech Capital in addition to five other investors to conclude the Series C financing round. Jon Lauckner, President of GM Ventures and Chief Technology Officer and Vice President of GM’s Global R&D Division stated that the company was investing in NanoSteel to capitalize on their steel alloy technology that is envisaged as a game changer for the automotive industry.