Monarch raises $133M to expand electric tractor into Europe
Monarch Tractor has secured $133 million USD (€120 million) in funding for expansion, with a particular focus on Europe
Monarch Tractor announced this week that it has completed the largest funding round in agricultural robotics history. The company raised $133 million USD (€122 million) in growth capital in a round led by Belgian fund Astanor Ventures and investment fund HH-CTBC Partnership, affiliated with Foxconn. This funding values the company at over half a billion dollars.
Establishment in Belgium
Monarch will use the new funding for further technological development of their tractor and to expand their global dealer network, including new markets and applications in various crops. This includes expansion into Europe, where Monarch sees great potential for its autonomous electric tractor, comparable in size to a 70 hp diesel version.
The European expansion will be managed through a headquarters in Flanders, Belgium, with potential future production and development. In the US, Monarch tractors are currently built by Taiwanese manufacturer Foxconn, known for producing Apple iPhones, at the Lordstown plant, a former General Motors auto factory in Ohio.
Electric tractor for high-value crops
By fully utilizing electric energy, Monarch aims to meet the growing demand from farmers of high-value crops like vineyards, where consumers increasingly demand food production with minimal fossil fuel use.
So far, the Monarch tractor has been primarily used in vineyards, orchards, and other perennial crops like berries, which grow in fixed patterns within a plot. An example is Mt. Pisa in Central Otago, New Zealand, where Future Farming observed the Monarch tractor in use.
400 Units sold in two years
The MK-V tractor from Monarch is one of the world’s first fully electric tractors that can also operate autonomously. It combines advanced AI and autonomous driving technology to support various field operations. The MK-V tractor is currently available in 12 US states and three other countries. Since its release in December 2022, over 400 MK-V tractors have been sold, offsetting more than 850 tons of CO2 emissions over a total of 42,000 operating hours.
Practical challenges of the E-Tractor
Despite the many benefits of the MK-V tractor, there are significant challenges such as the initial adoption costs and the need for infrastructure to support electric tractors in remote areas. Additionally, integrating autonomy and full electric drive into traditional farming requires substantial adjustments.
Collaboration with CNH
Monarch’s technology is also being used by CNH Industrial to develop electric tractors for their Case IH and New Holland brands. This collaboration has resulted in the Farmall 75C Electric and T4 Electric Power models.
