Scottsdale, Arizona-based ECOtality, Inc. (OTCBB: ETLY), a company focused on electric transportation and storage technologies, has signed a letter of intent to form a joint venture with Shenzhen Goch Investment, Ltd., to establish manufacturing and distribution operations for electric vehicle (EV) charging systems in China.
In exchange for exclusive sale and distribution rights for ECOtality’s
charging stations in China, Shenzhen Goch Investment has agreed to
invest $10 million into the manufacturing joint venture and $5 million
into a sales and distribution joint venture.
ECOtality also announced the receipt of a $2.5 million direct investment. Shenzhen Goch Investment invested $2.0 million
and current ECOtality institutional shareholders invested an additional
$500,000. Ardour Capital Investments, LLC, acted as an advisor on this
“Shenzhen Goch Investment is a strong strategic partner that provides the knowledge and financial resources for ECOtality to successfully enter into the largest potential market for EVs and their supporting infrastructure–China,” stated Jonathan Read, president and CEO, ECOtality. “As we prepare for the commercial launch of grid-connected vehicles, the direct investment and joint venture with Shenzhen Goch Investment allows us to strengthen and expand our U.S. operations by internationally extending the reach of our technology leadership.”
According to the recent industry report by Pike Research, “Electric Vehicles on the Grid,” by 2015 the global market for electric vehicle charging equipment is expected to become a $1.9 billion annual industry, in which China is expected to be the world leader in charging station installations with 47.8% of annual sales.
ECOtality has exclusive rights to the patented Minit-Charger technologies, which the company says can fast-charge an EV in 10-15 minutes.
Shenzhen Goch Investment, headquartered in Shenzhen, China, is an investment holding company that focuses on high-tech, financial services, and commercial property development and operation with a combined asset value exceeding $300 million. Shenzhen Goch is 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.