Coda secures $394 million in capital for joint battery venture, expansion

Filed under: EV/Plug-in, Manufacturing/Plants, Coda Automotive

Coda EV Sedan – Click above for high-res image gallery

Last month, Coda Automotive stated that the Chinese government would help them secure a big-time loan that would go towards expansions of Coda facilities and towards battery production for the upcoming Coda sedan. The loans would ring in to the tune of nearly $500 million in capital. Well the loans are in, and Coda is one step closer to becoming a real player in the electric vehicle segment.

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:

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.

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.

Gallery: AltCar 2009: Coda Sedan