VCs join $400m round for China, US-based EV player
CITIC Securities has led a $400 million funding round - with participation from CDH Investments and National Venture Capital - for China and US-based electric vehicle (EV) supplier Microvast Power Systems.
According to a statement, the capital will be used to advance battery technology R&D work and scale production capacity via a new factory in Zhejiang province that is scheduled to be fully operational by 2019. It will also support the further implementation of a clean public transport strategy in China and across Asia Pacific as well as in Europe and North America.
Founded in 2006, Microvast focuses on developing fast-charging lithium-ion battery systems for EVs, including hybrid-electric municipal bus fleets. Worldwide, it supplied more than 7,500 all-electric and hybrid-electric buses for metro transit use in 2016. Products are designed to be customizable to suit various commercial applications and include batteries that can be fully charged in 10 minutes and last the lifetime of a vehicle.
The investment extends a string of cleantech private equity deals targeting China’s automobile industry, including a RMB780 million ($113 million) investment in EV manufacturer Chehejia and a $7.8 million round led by H&Q Asia Pacfic for Efficient Drivetrains. Meanwhile, Go Scale Capital, a firm sponsored by GSR Ventures and Oak Investment Partners, has backed China-focused EV projects with US drive systems developer Protean Electric and NASDAQ-listed solar power specialist SPI Energy.
Earlier this year, Horizons Ventures – an investment firm controlled by Hong Kong billionaire Li Ka-shing – led a $23 million Series A for a China push by Divergent 3D, a US-based company using 3D printing technology to allow for the design of cars with reduced environmental impact. This coincided with an investment by China’s CMC Capital Partners in Formula E, a UK-based electric racing group seen as instrumental in guiding EV design trends and improving consumer perceptions.
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