(Yicai Global) Dec. 12 -- NextEV Co., China's Tesla, plans to set up a CNY10 billion (USD1.45 billion) industry fund in Wuhan, the capital of China's Hubei province, partly to finance the building of a production base with annual capacity of 200,000 vehicles.
The Shanghai-based company will form Yangtze River NextEV Fund after signing an agreement with investment fund Yangtze River Economic Belt Industry Fund and Wuhan East Lake High-tech Development Zone on Dec. 11. The fund will mainly invest in electric vehicles, relevant technologies and new materials and will focus on promoting the research and development of smart green vehicle technologies.
The industry fund will also partner with other investors to spend CNY20 billion to CNY30 billion to build a green vehicle industrial park in the development zone, which will include a new energy vehicle project with an annual production capacity of 200,000 vehicles as well as an R&D and test center.
NextEV is a company focusing on the research and development of high-performance smart electric vehicles. It has secured more than USD700 million of investments from companies including Chinese Internet giant Tencent Holdings Ltd. and Liu Qiangdong, founder of JD.Com Inc.
It has also established R&D, design and business arms in Silicon Valley, Munich, Shanghai, Beijing and Hong Kong, as well as in London. NextEV unveiled its first electric supercar, the EP9, in London on Nov. 21. The vehicle has a maximum power of more than 1,000 kilowatts and can run up to over 300 kilometers an hour. The company plans to launch the car in the Chinese market in 2018.
NextEV's partner Yangtze River Economic Belt Industry Fund is an investment fund set up by the Hubei provincial government, which contributed CNY40 billion, and China's leading financial companies. The fund is focused on supporting the development of emerging industries in Hubei.