Finnish startup Donut Lab has secured €25mn in seed funding to scale up its in-wheel hub motors for electric land, sea, and air vehicles.
Alongside the investment, Donut Lab is opening an R&D hub in Chippenham, UK. Risto Siilasmaa, serial tech investor and former Nokia chairman, has also joined the company’s board.
Marko Lehtimaki, Donut Lab’s CEO and co-founder, said the investment signals a continued demand for the company’s technology. “It demonstrates to us [founders] what we have always believed, that our tech solution is truly groundbreaking,” he said.
Donut’s flagship innovation is a hollow hub motor dubbed, you guessed it, the “Donut.” Instead of sitting under the hood or seat, the motor slots directly into the wheel rim. That means the car doesn’t require parts like axles, transmissions, or differentials, which could make it lighter and more cost-efficient compared to traditional EVs.
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Verge Motorcycles first developed the signature hollow, rear-hub motor design and installed it in a motorbike. It spun out Donut Labs as a subsidiary in 2024 to apply that same concept to all manner of electric vehicles — from e-scooters and drones to electric cars and semi-trucks.
The 21-inch version for cars delivers 630kW of power and 4,300Nm of torque — numbers typically seen in hypercars — yet weighs just 40kg. Donut claims it offers the highest torque and power density of any EV motor on the market.
The company says it has overcome the long-standing Achilles’ heel of in-wheel motors: unsprung mass — the weight of components not supported by the suspension, which can impair handling and ride comfort. Past attempts to put the motor in the wheel compromised these qualities, but Donut says its design is light enough that the impact is negligible.
Beyond motors, Donut is also developing batteries, software, and computer connectivity as part of its plans to become a one-stop shop for EV manufacturers. It’s also targeting a broad range of applications outside the traditional auto industry, including aerospace, defence, and robotics.
Yet, scaling across land, sea, and air vehicles — while also building batteries, software, and full-stack EV systems — is a hefty task even for deep-pocketed firms. Let’s see if Donut Lab has what it takes to pull off its ambitious plans.