Asia GPs back $107m Series B for Divergent 3D
A group of Asian GPs including Hong Kong tycoon Li Ka-shing's Horizons Ventures has backed a Series B round of up to $107 million for US electric vehicle (EV) industry supplier Divergent 3D.
The round was led by O Luxe Holdings, a Hong Kong group backed by Li that makes EV investments. Shanghai Alliance Investment and French engineering consultant Altran Technologies also participated.
“As a leading investment holding company dedicated to advancing sustainable manufacturing and transportation, O Luxe aligns with Divergent’s mission and fully understands the importance of disruptive technologies to the automotive industry,” Keven Czinger, founder and CEO of Divergent, said in a statement.
The investment secures $65 million for technology commercialization efforts and a Chinese expansion drive, plus an option for investors to provide a $40 million extension. It follows a $23 million Series A led by Horizons in January with participation from Altran.
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. Its technologies aim to lower capital investment and production costs while producing vehicle structures that are more than 50% lighter and require less fuel to drive.
Divergent has made the Chinese EV market a core part of its strategy, which includes the development of an end-to-end production system that could service a number of EV-related business models. Strategic partners include The PSA Group, which encompasses a number of European carmakers such as Peugeot, Citroen, and Opel.
Western cleantech companies have proven a critical source of expertise and technology in China’s EV space. Recent PE activity exploiting this trend includes 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.
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