Horizons invests $23m in US auto group's China push
Horizons Ventures - an investment firm controlled by Hong Kong billionaire Li Ka-shing - has led a $23 million round for a Chinese business development effort by US-based automotive technology company Divergent 3D.
The Series A investment also included participation from French engineering consultant and Divergent development partner Altran. The capital will be used to commercialize the company’s environmentally-focused technology in China, where pollution concerns have prompted government support for clean vehicle advancements.
“Divergent 3D is honored to have earned the confidence of Horizons Ventures, a world leader in innovation that recognizes the damage being generated by automotive manufacturing in China and around the world,” Kevin Czinger, CEO of Divergent 3D, said in a statement. “This investment enables us to continue our strong momentum by providing resources and relationships to bring our automotive manufacturing technology to as many automakers as possible, especially in China.”
Founded in 2014, Divergent uses 3D-printing to create strong and efficient complex structures that allow companies to quickly design and build new cars at a reduced cost and environmental impact. The company claims it can lower capital investment and production costs while producing vehicle structures that are more than 50% lighter and require less fuel to drive.
The investment extends a string of PE cleantech investments targeting China’s automobile industry, including a $70 million commitment to Protean Electric from GSR Ventures, Oak Investment Partners and Go Scale Capital, a Chinese firm sponsored by both GSR and Oak. Last year, Go Scale also teamed up with US solar power company SPI Energy on a $500 million project to build electric vehicle batteries in China.
The use of 3D printing in Asia is expected to grow as manufacturers perfect methods of improving the region’s traditionally capital-intensive factories. Other recent PE activity in this space has included a $25 million investment in XJet by China Everbright and Israel’s Catalyst Private Equity.
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