Local Chinese Governments Give Financial Support to Leading U.S. Electric Vehicle Battery Company

USD 290 Million will allow for major expansion of Boston Power factories in Liyang and Tianjin

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Dec 22, 2014, 01:00 ET

BEIJING, Dec. 22, 2014 /PRNewswire/ -- Boston Power, a world leader in next generation electric vehicle battery design and production, has secured USD 290 million in local government financial support for the expansion of its two facilities in China. The company's Liyang facility will receive a total investment of 160 million dollars, increasing its manufacturing capacity fivefold by 2016. The company's Tianjin facility will grow its capacity to 4GW by 2017, and is expected to reach 8GWh in manufacturing capacity by 2018.

The expansion of these facilities will allow Boston Power to meet the growing demand by leading Chinese automakers in the Yangtze River Delta and throughout the Bohai Gulf in Northern China. China's EV market is expected to reach USD 35 billion by 2020, with demand for high-end lithium-ion batteries hitting 100 GWh.

Sonny Wu, chairman of Boston Power noted that "China is the largest and fastest growing EV market in the world and leads in the manufacturing of Eco-EV and E-buses. Our analysis shows that this market will experience significant battery supply constraints over the next 3-5 years which we aim to address."

On the decisions by both governments to provide financial support, Mr. Wu added that "this is a vote of confidence in Boston Power's leading technology in high energy density, longer life-cycle and fast charging EV batteries. We will use this support to ease a backlog of secured contract orders for our range of more than 30 EV battery designs used by leading Chinese automakers. We are proud that our batteries have demonstrated a 30+% drive range against local competitors."

This announcement comes on the back of the recent U.S.-China Joint Announcement on Climate Change. Both nations have committed themselves to reducing their carbon emissions by over 20%, by 2025 and 2030 respectively, while increasing the share of non-fossil fuels in primary energy consumption to around 20% by 2030.

Commenting on the decision to provide support, Mr. Feng Jiang, chief director of Jiangsu Province Zhongguancun Science & Technology Industrial Park, said that "Boston Power is a great example of how to turn the climate change goals announced by China and the United States into a reality. Both nations need to leverage their complementary technological and manufacturing assets, through companies such as Boston Power, to achieve their ambitious, new emissions targets. We are thrilled to take part in this effort in Liyang."

Mr. Xiangyu Ni, chairman of the Administration Commission of Tianjin Binhai Hi-Tech Industrial Development Area, added that "Tianjin has been on the cusp of China's drive for EV adoption and we're constantly embracing a growing variety of EV car models into our city and into our grid. We are specifically supporting local and foreign companies, such as Boston Power, whose innovations are helping China, the world's largest auto market, to meet its aggressive demand for long-range EV."

Boston Power's products serve multiple segments in the electric vehicle industry, all geared towards the growth of green, sustainable cities. In addition to premium cars, the company's products cater to buses, sedans, taxis, and a variety of EVs designed for personal consumers and clean public transport operators.

ABOUT BOSTON POWER

Boston Power is a developer and manufacturer of next generation lithium-ion battery cells, blocks, modules and systems. Designed to fuel a wide range of applications, its flagship offerings, Swing® and Sonata®, serve as the foundation for a new era of longer-lasting, faster-charging, safer and environmentally sustainable batteries. The company's Swing® product delivers unmatched capabilities for Battery Electric and Plug-In Hybrid Electric Vehicles (BEV/PHEV), and utility energy storage applications. Sonata® delivers industry leading performance to a wide range of portable power and industrial applications.

Boston Power is a global company with R&D centers in Westborough, Massachusetts, USA and Beijing, China, and mass manufacturing operations based in Asia. The company is funded by top-tier venture capital firms GSR Ventures, Venrock, Foundation Asset Management and Oak Investment Partners.

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SOURCE Boston Power