Elbow Beach Capital is investing £750,000 in Munro, the UK’s first fully-electric 4X4 manufacturer. This investment doubles down on its belief that there exists a considerable opportunity to decarbonise vehicle fleets within the mining, forestry and agriculture industries.
This funding follows a recent investment into a London-based waste tech, WASE, which TFN covered. Elbow Beach Capital also launched a £20M investment vehicle last month focused on decarbonisation, sustainable energy, and social impact opportunities.
“We’re very excited to have Elbow Beach Capital‘s support, particularly as we feel that their passion and enthusiasm match our own,” said Russ Peterson, Munro CEO.
Decarbonising fleets within the mining, forestry and agriculture industries
Farming alone has been accountable for approximately 10% of all UK greenhouse gas output. Furthermore, farming activities contribute to 1.7% of all carbon dioxide emissions while mining is responsible for roughly 4-7% of all global emissions.
There exists over 220,000 farms and 2,000 active mines in the UK alone relying on all-terrain vehicles to carry out daily operations.
While EVs have attracted significant interest and investment in recent years, commercial 4×4 vehicles have been largely ignored despite the substantial carbon emissions generated by these vehicles owing to low fuel efficiency and reliance on diesel.
Munro, having spotted this was established in 2019 with a mission to build the best all-terrain EV in the world. The company’s flagship product, the Munro Mark 1 is a back-to-basics, utilitarian four-wheel-drive electric vehicle. The Mark 1 demonstrates impressive off-road performance and reliability, with the capability of carrying a 1,000kg payload and delivering a range of over 280 kilometres per charge.
Inspired by adventure and Land Rover
The Glasgow-based EV startup was conceived when founders Russ Peterson and Ross Anderson were inspired during a camping trip to the Scottish Highlands.
Russ Peterson describes noticing EV charging stations and Land Rovers kitted out with roof tents and other adventure gear right next to them. The idea of a rugged electric vehicle for camping and exploring just didn’t seem to exist yet. With reliable charging infrastructure stretching across Europe and beyond, the duo couldn’t help but think about the possibilities.
They came up with the idea for a rugged four-wheel-drive EV, initially setting out to convert used four-wheel-drive vehicles to electric, but were met with lots of limitations. As much as converting used vehicles would be kinder to the environment because it’s “upcycling”, throwing the engine meant ending up throwing away half the car, which felt very wasteful. As a result, the team decided the better approach was to develop their bespoke base vehicle, tailored to their unique specifications.
Positive cash flow by 2025
Munro electric first intends on using the new funding to recruit key personnel. The company will also develop its order book and grow its sales network while building, testing and improving a production-intent prototype vehicle. Muno will raise more funds later this year to scale the production line, recruit assembly staff and complete the first deliveries of pre-ordered vehicles.
Munro anticipates its Mark 1 will be production line ready later this year with first vehicle deliveries to be made in 2023. Munro is targeting the production of 5000 vehicles per year by 2030, with its production line at full capacity. The company expects to be cash-flow positive by 2025, allowing for an international rollout of its vehicles.
Jon Pollock, CEO of Elbow Beach Capital has joined Munro’s board of directors, representing his fund’s interests in Munro.
“We’re delighted to be helping to bring Munro to market. Elbow Beach Capital exists to identify and support companies challenging carbon-intensive industries and delivering practical solutions, Munro is a fantastic example of this,” said Jon Pollock.