ECOtality positions for China charging stations market
The global market for electric vehicle charging equipment is expected to reach $1.9 billion annually by 2015, with China said to be getting 47.8% of annual sales. Image sourced from STOCKXPERT Clean energy business group ECOtality, Inc. has formed a joint venture with a China-based investment firm that will make and distribute charging systems in what is expected to be the world’s leading market for electric vehicles.
The Chinese partner, Shenzhen Goch Investment, Ltd. has provided $15 million for the manufacturing and distribution joint venture, and a $2 million direct investment into ECOtality.
In return, Shenzhen Goch Investment will receive exclusive sale and distribution rights for ECOtality’s charging stations to be sold in China.
ECOtality operates in the clean transport and storage business and other clean energy sectors through its three subsidiaries, which include eTec, Innergy Power, and Fuel Cell Store.
It has developed the patented Minit-Charger technology that can fast-charge an electric vehicle in 10-15 minutes and which will be sold in China.
According to Pike Research, the global market for electric vehicle charging equipment alone is expected to reach $1.9 billion annually by 2015. Of this, China was said to be getting 47.8% of annual sales. ECOtality said China also could be the largest potential market for electric vehicles.
Shenzhen Goch Investment is an investment holding company that focuses on high-tech investments and commercial property development, among other areas, with an asset value of over $300 million. It is also the owner and operator of the recently-established Tianjin Goch Science & Technology Park, where the Tianjin government plans to invest a minimum $750 million in the 160-acre park to accommodate leading high-tech and clean tech companies.
Shenzhen Goch Investment will provide knowledge and financial resources for ECOtality’s China market entry, according to ECOtality president and CEO Jonathan Read. ECOtality’s institutional shareholders invested an additional $500,000 to support the company’s China expansion.
ECOtality, based in Scottsdale, Arizona, was trading at $0.11 at the OTCBB as of yesterday afternoon.
- Eric Dorente
Source:
1 http://www.ecotality.com/pressreleases/070609_ETLY_SGI.pdf