MycoWorks, a California-based manufacturer of mushroom-based fungi leather called “Reishi”, received an investment of an undisclosed amount from GM Ventures, the venture arm of General Motors (GM), as part of a strategic partnership.

Via the partnership, GM and MycoWorks will co-develop mycelium leather materials for a range of automotive design applications. The funds from the investment will be used to advance GM’s R&D efforts and develop sustainable alternatives for GM’s automotive designers.

For MycoWorks this partnership marks the first time its material will be used in the automotive design space, which is reportedly one of the largest end-use markets for leather, and will be a significant opportunity for the company to develop sustainable alternatives for this space.

Analyst QuickTake: This announcement follows the launch of MycoWorks’ first fashion products made from Reishi in July 2022 and the series C funding of USD 125 million raised in January 2022 to accelerate the commercial production of Reishi. The company has been primarily targeting the application of Reishi in the fashion industry thus far and has partnered with leading fashion brands such as Hermès.