ECOtality Inc. and Shenzhen Goch Investment Limited’s joint venture in China has received $300 million in credit for its network of electric vehicle charging systems.
The credit line is part of a 10 billion yuan ($1.5 billion) credit facility from the China Construction Bank, which is allocated primarily for new energy and infrastructure projects, said Dongsheng Gong, chairman of Shenzhen Goch.
ECOtality China will use the funds to offer networked charging systems at a low cost to utilities, governments and major commercial and retail clients in the global market. The Chinese subsidiary will also provide three- to nine-year credit facilities to pay for the initial costs of the charging systems.
This, in turn, will accelerate the adoption of electric vehicles worldwide, said Jonathan Read, chief executive of ECOtality.
“This is a major milestone for creating value for our shareholders as it provides us the capital needed to become the dominant player in the E.V. marketplace with no current dilution to our shareholders,” he added.
ECOtality China may access the credit facility through a project by project basis, although Shenzhen Goch’s approval is required.
The marketability of electric vehicles is not only dependent on its growing popularity to environmentally conscious users, but also on the availability of charging stations. Electric vehicles need a corresponding system of charging stations, which needs to be coordinated with utilities.
Different companies and institutions have already collaborated on electric vehicle technology innovations and the necessary utilities that come with it.
Just last year, Japan teamed up with California-based Better Place to develop the world’s first electric taxis with switchable batteries. The Japanese government also worked with Indiana-based EnerDel Incorporated to provide lithium-ion batteries to power the country’s electric bus fleets.
Mazda Motor Corporation and Itochu are also other companies involved in the electric vehicle business.
In September 2009, Shenzhen Goch signed agreement with Arizona-based ECOtality (OTCBB:ETLE ) to establish two joint venture companies in China. The first company, ECOtality China, deals with the manufacturing and assembly of electric vehicle charging equipment, while the second company will market and sell the equipment.
