Like it or not, the automotive world seems to be going electric. That means electric motors and batteries will become the next big thing, with big-time names already investing in the industry. BMW, as a car maker, has not only to keep up but stay ahead of the curve. To that end, BMW’s strategic investment arm, BMW i Ventures, announced an investment in Software Motor Company (SMC).

The Silicon Valley-based company has completed a $25 million financing round which saw, among others, BMW i Ventures as one of the investors. According to them, the funds raised will allow them to expand and continue accelerating product development efforts. Their main focus is designing and deploying the world’s most reliable, efficient, and intelligent motor systems. Their initial efforts led to some impressive results.

SMC has primarily focused on transforming the HVAC industry, since the operation of buildings is responsible for 40% of global CO2 emissions. SMC is deploying its Smart Motor System with dozens of major retailers, restaurants, and commercial and industrial facilities, where their motor retrofits are driving average energy savings of 64% from their HVAC systems.

If the entire HVAC sector applied this technology and achieved similar performance, it would reduce annual global carbon emissions by 3.2 gigatons, which is the equivalent of 10% of all global emissions from fossil fuels. That would be like adding 10 new Amazon rain forests.

BMW Electric Motors to Feel Different Compared to Rivals

“Electric motors are a massive, $100B market, and they move our modern world, while consuming over 45% of the world’s electricity. So investing in a company that can deliver huge electrical cost savings, while selling motor systems that are lower cost, more reliable, and made from more sustainable materials seems like a no-brainer,” said Greg Smithies of BMW i Ventures.

Electric Vehicles will require lower costs and longer ranges to reach ubiquity. SMC’s technology enables lower cost motors, and lowers the cost of the battery for comparable range, thanks to higher efficiency over a wide operating range.