Secured a $42 million commitment from Sinopoly Battery Limited, a worldwide leader in the research, development, production, distribution and sale of Lithium-ion batteries and related EV products. The first $2 million in funding closed today, and the remainder will be invested in two tranches pending milestones to be achieved by both companies in the coming months.
The $42M investment will position Sinopoly as a strategic shareholder in Smith Electric. Under the agreement, Sinopoly will become Smith Electric’s exclusive supplier for batteries in vehicle applications that are compatible with Smith Electric’s platforms and customer requirements. Sinopoly will also become a preferred supplier for certain electric vehicle components that can be manufactured in its Hangzhou facility.
Bryan Hansel, chief executive officer of Smith Electric Vehicles, said that:
Demand for all-electric commercial vehicles is rapidly increasing in China, and Sinopoly’s investment in Smith Electric highlights the important role we will play in the global marketplace,” said Bryan Hansel, chief executive officer of Smith Electric Vehicles. This investment provides both companies with the opportunity to leverage the synergies between our operations while Smith maintains the financial and operational flexibility to scale manufacturing, transition and strengthen our supply chain, and move toward company profitability.
whilst Mr. Cao Zhong, the chairman and executive director of Sinopoly Battery Limited, said that:
Smith is an internationally renowned supplier of EVs. Sinopoly’s investment in Smith represents an important and strategic advance step in establishing Sinopoly as a significant integrated player in the EV industry. The combined expertise of Smith and Sinopoly, which will adopt the name of FDG Electric Vehicles Limited shortly, along with the macro-subsidy policy for alternative energy vehicles, uniquely positions us to capitalize on the rapidly growing commercial EV market in China and the U.S.
Smith (or should that now be FDG?) chairman of the board Charles Gassenheimer hinted at a future IPO, saying that:
Sinopoly’s investment in Smith Electric Vehicles marks an important milestone in recapitalizing and restructuring the company in preparation for the public market. This agreement underscores Sinopoly’s institutional understanding of the global electric vehicle industry and the company’s commitment to working with Smith Electric to create a major player in the market.
Western Power Distribution will be one of many UK companies breathing a sigh of relief that Sinopoly have breathed new life into their favourite supplier of electric commercial vehicles. Perhaps the U.S. Department of Defense will do likewise?