ECOtality, Inc. (NASDAQ:ECTY), a leader in electric vehicle (EV) charging technologies with the world’s largest connected EV charging network, has joined forces with Changchun Eco-Power Technology Co., Ltd. to address China’s recently adopted ‘12th Five-Year Plan’ for developing the nation’s EV industry.
To encourage the mass market adoption of EVs, the new plan calls for establishing a network of 2,000 charging stations with 400,000 EV chargers in more than 20 pilot cities across China by 2015.
The partners have established a new joint venture entity, Tianjin Eco-Power Technology Co, Ltd., which will manufacture and distribute ECOtality charging products for a range of EVs, including two and three-wheel vehicles, buses, material handling equipment, and airport ground support—all specifically designed for the regional marketplace. Operations will involve a new assembly facility established in Tianjin.
“China is rapidly expanding its leadership position in the electric vehicle market by implementing fleets and public transit applications that require high-power charging solutions like ECOtality produces,” said Jonathan Read, CEO of ECOtality, Inc. “Forming this joint venture with the highly capable management team of Changchun Eco-Power allows us to immediately address this tremendous greenfield opportunity.”
Wei Lu, CEO of Changchun Eco-Power Technology, commented: “ Our joint venture with ECOtality, clearly the world leader in EV charging network technology, will greatly accelerate our market penetration, and enable us to participate in the exciting opportunities generated by the development of China’s EV infrastructure.”
According to Pike Research, the Asia Pacific region will continue to lead the world in the sale of electric vehicles. During 2012, Pike Research estimates that global EV sales will surpass 257,000 units, nearly half of which will be sold in the Asia market.
As is standard practice, the establishment of the joint venture and valuation of the capital contributions are subject to the final approval of China’s government authorities.