Smith Electric Vehicles Invade China

Smith Electric Vehicles Lands Electric School Bus Deal in China

Written by Green Chip Stocks
Posted February 22, 2012 at 6:48PM

Smith Electric Vehicles Corp. is moving into China to combine its vehicle design with products from a Chinese vehicle parts company.

Last week the company announced its letter of intent with Wanxiang Group that includes a Wanxiang investment in Smith worth $25 million and a $75 million joint venture between the two companies.

The joint venture will be for school buses and commercial vehicles in China.  Smith will provide the designs and Wanxiang will provide the parts to create a number of electric vehicle fleets.

The two main parts of Smith’s designs include Smith Drive, its drive and control system, and Smith Power, its battery system that uses cells from Valence (NASDAQ: VLNC) and A123 (NASDAQ: AONE).

And Wanxiang has been developing electric vehicle parts, which will be used to build these school buses and commercial vehicles.

Smith currently produces two models of trucks, each named after an integral figure in science.  The Newton weighs approximately 16,500-26,400 lbs with the ability to travel between 40 and 150 miles, and the Edison is slightly smaller, weighing between 7,700 and 10,400 lbs and traveling between 40 and 100 miles.

Only the Newton is currently available in the U.S.

Smith Electric and Wanxiang signed the letter of intent at the U.S./China Economic and Trade Cooperation Forum last Friday, and it is subject to third party approvals and the execution of these agreements.

Enjoy this article? Get more in our Free Newsletter

Get the inside track on the most lucrative stock plays in today's scorching-hot alternative and renewable energy markets.

Sign up for the FREE Energy and Capital daily e-Letter from alternative energy experts Jeff Siegel and Nick Hodge. We'll also send you our latest report on Wind Investing straight to your inbox.

Your Privacy is Assured.

Jeff Siegel on CNBC

Green Chip Stocks Editor Jeff Siegel, featured guest on CNBC's Green Week

Related Articles

Smith Electric Vehicles IPO
A maker of all-electric trucks files to go public.
Big Oil Electric Vehicle Projections
I don't hate the oil companies. In fact, I find them quite entertaining. Especially when they offer their data on electric vehicle integration.
Smith Electric Vehicles IPO Update
Smith Electric Vehicles chugs along nicely, now with an extra $40 million in its pocket.
Tesla Roadster Crushes Porsche
This is what happens when you put a Tesla up against a Porsche.