GEM motors, a Kamnik-based tech firm, is the lead partner in the project that includes two more Slovenian firms, Domel and Tiskana vezja Luznar, along with the German Fraunhofer institute and French maker of electric scooters Eccity.

The funds will be used for the development of an innovative electric motor entirely enclosed within the wheel hub, the controller included. The company claims this is a unique solution at the global level.

GEM motors says it plans to use the funds to expand the R&D department. Within five years it plans to generate annual turnover in excess of EUR 100m.

In the first year of production the output is estimated at 2,000-3,000 motors, but the long-term goal is to produce 100,000 per year, the company said.