The capital consists of $100 million in committed equity capital and a $294 million line of credit from the Chinese Bank of Tianjin.
"This capital strengthens the strategic position of our joint venture and allows us to meet the rising global demand for automotive-grade lithium-ion battery and utility power storage systems," said Kevin Czinger, President and CEO, CODA Automotive. "The U.S. and China face tremendous security and environmental challenges that we intend to address by combining our complementary capabilities and skills. This joint venture will accelerate the adoption of new energy technology while creating jobs in the U.S. and abroad."
The capital will be used to support the production of the electric vehicle that the JV plans to bring to the U.S. market later this year.
We are talking about the China-produced CODA Sedan, an electric vehicle based on the Chinese Hafei Seibao sedan. The car uses an electric motor that offers 134 hp and 300 Nm of torque. This is powered by a lithium-ion battery pack developed by the company’s partner, Lishen, who is one of the world’s top lithium ion cells producers, having a client portfolio that includes companies like Apple, Motorola, Samsung and Vodafone. The vehicle will reach 62 mph in 11s and will have an electronically limited top speed of 80 mph. The EV will have a price of $45,000, but this can be reduced to $37,500 by using a $7,500 state incentive.
The car will go on sale in California, with the first deliveries scheduled for the fourth quarter of the current year. CODA plans to sell over 14,000 units of the vehicle by the end of next year.