Smith Electric Vehicles, a manufacturer of all-electric medium-duty commercial vehicles, has received a $42 million investment from Sinopoly Battery Ltd. (Sinopoly), a China-based company that designs lithium-ion batteries and related EV products.
Smith Electric says the first $2 million in funding has already closed, and the remainder will be invested in two tranches ‘pending milestones to be achieved by both companies in the coming months.’
Under the agreement, Sinopoly will become Smith Electric's exclusive supplier for batteries in vehicle applications, as well as a preferred supplier for certain electric vehicle components that can be manufactured in its Hangzhou facility.
‘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,’ says Bryan Hansel, CEO of Smith Electric.
Smith Electric suspended production in the fourth quarter of 2013. The company now plans to resume production in its Kansas City, Mo., facility this summer.