GM invests in 'game-changer' lightweight steelmaker
DETROIT (Reuters) -- General Motors Co. is investing in a company that has designed a new type of lightweight, high-strength steel that could help the automaker significantly improve the fuel economy of its future cars and trucks.
GM, in a statement today, said that its venture-capital arm, General Motors Ventures, has invested an undisclosed amount in NanoSteel Co.
The 10-year-old, privately held steel company, based in Providence, R.I., has developed a new type of steel alloy that is designed to be thinner and higher in strength than more conventional steel, without compromising structural integrity.
The so-called "nano-structured" steel could be used in place of aluminum and other more exotic materials that automakers have considered, but which might be more costly to manufacture.
GM's chief technology officer Jon Lauckner, who is head of global research and development and president of GM Ventures, said NanoSteel's technology is "a potential game-changer" in the auto industry's ongoing battle to reduce vehicle weight and fuel consumption.
NanoSteel said GM's investment, part of a Series C round of venture funding, would enable it to "accelerate the final phases of development" of its new steel.
Founded in 2010 with an initial investment of $100 million, GM Ventures is the automaker's venture-capital subsidiary that aims to help develop new technologies throughout the automotive sector. GM Ventures has previously invested in a car sharing service and a firm that produces solar-powered charging stations for plug-in vehicles, among others.Contact Automotive News