The new loans and investments officially total $394 million. Coda will receive $100 million in direct investments and an additional $294 million in capital commitments from banks. The joint venture between Coda and battery maker Lishen Power Battery will receive $100 million in equity. The Bank of Tianjin Joint Stock Co. has showed its commitment to Coda by extending them a $294 million line of credit. The funding is in addition to the several efforts Coda has successfully launched to raise funding on its own behalf.
Coda chief executive officer Kevin Czinger said in a statement that:
The additional funding will move Coda closer to its goal of releasing the Coda electric sedan by the end of this year and delivering up to 15,000 vehicle by the end of next year.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. 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.
CODA Automotive Battery Joint Venture Secures $394 Million of Committed Capital for Expansion
Company poised to meet the rising demand for electric car and energy storage battery systems
SANTA MONICA, Calif., March 30 /PRNewswire/ -- California-based electric car and battery company CODA Automotive announced today that together with its joint venture partner, Lishen Power Battery, it has secured $394 million of committed capital. Lishen is one of the world's largest manufacturers of lithium ion cells and a key battery supplier to industry leading companies such as Apple, Motorola, Samsung and Vodafone. The capital will enable the company to rapidly industrialize the all-electric CODA car's power system for commercial volume production and support its ability to mass manufacture transportation and utility power storage battery systems.
The joint venture has secured $100 million in committed equity capital and has received a commitment for a $294 million line of credit from the Bank of Tianjin Joint-Stock Co., Ltd.
"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."
CODA Automotive is slated to begin deliveries of its zero tailpipe emissions, all-electric car in the fourth quarter of this year. The company is headquartered in Santa Monica, California and anticipates that it can deliver more than 14,000 vehicles to customers in California by the end of 2011. To date, CODA has raised in excess of $100 million in capital. Through its joint venture, CODA Automotive plans to establish battery manufacturing capacity in the U.S.
About CODA Automotive: Headquartered in Santa Monica, Calif., CODA Automotive is working to reduce dependence on oil and leading the way to a cleaner future by building 100% electric cars and transportation battery systems. CODA Automotive is working in a smart, interdependent way with a number of leading global technology and manufacturing companies to quickly and efficiently bring electric drive technology to market and jump start the electric car movement. Through its exclusive transportation and electric utility storage battery joint venture with Lishen Power Battery, CODA Automotive is also a leading designer and large-scale manufacturer of power battery systems. The American engineered CODA electric car will be available to consumers in 2010.