ABB invests $10M in ECOtality
11 January 2011
ABB, a global provider of power and automation technologies, has made a $10-million equity investment in ECOtality, Inc. In conjunction with the investment, ECOtality and ABB have entered into a North American manufacturing agreement that establishes a collaborative and strategic supplier relationship between the ABB Group and ECOtality.
Net proceeds of the $10 million equity investment from ABB will be utilized by ECOtality as working capital to support the continuing requirements of the EV Project and will provide the Company with necessary funding to meet its anticipated expansion as a leader in electric vehicle (EV) charging infrastructure. As part of the transaction, ABB will have two representatives appointed to ECOtality’s Board of Directors.
In addition, ECOtality and ABB have formed a manufacturing agreement establishing ABB as the preferred supplier of ECOtality’s power electronics and component parts in North America. ABB and ECOtality will work together to develop innovative charging technologies for electric vehicles (EV) that incorporate the advanced functionalities of ECOtality’s Blink EV charging stations, currently available through the Blink Network.
The partnership brings together ABB’s experience in smart grids, renewable energy and reliable, efficient power networks, with ECOtality’s leadership in North America’s growing market for electric vehicle infrastructure. It is an ideal combination of skills that will provide the solutions customers are seeking to enable sustainable mobility while maintaining grid reliability
—Brice Koch, head of ABB Marketing and Customer Solutions
ECOtality’s current set of Blink EV charging solutions include the Blink Level 2 Home Charger for residential use, as well as the Blink Level 2 Pedestal Charger and Blink DC Fast Charger for commercial, fleet, and public locations. The Blink DC Fast Charger, introduced in October 2010, is capable of providing a full charge in less than 30 minutes.
ECOtality is project manager of The EV Project and will oversee the installation of 15,000 commercial and residential charging stations in 16 cities and major metropolitan areas in six states and the District of Columbia. The project will provide an EV infrastructure to support the deployment of 8,300 EVs. The project is funded by the US Department of Energy through a federal stimulus grant of $114.8 million, made possible by the American Recovery and Reinvestment Act (ARRA). The grants are matched by private investment, bringing the total value of the project to approximately $230 million.
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