ImpactAlpha. July, 11 – The U.K. development finance institution’s stake will anchor funding for a new electric-only subsidiary of Indian automaker Mahindra & Mahindra.
Mumbai-based M&M, known for its sport utility vehicles, will match BII’s investment in the new “EV Co.” with its own capital. The pair hope to attract another $500 million from private investors.
“The acceleration of EV development in India will be critical to supporting the country in reaching its emission targets as well as improving air quality in many urban areas,” said BII’s Nick O’Donohoe.
While electric two- and three-wheelers are popular in India, four-wheel passenger vehicles have been slower to catch on. But investors see an opportunity to build out the nascent market.
Almost half of Indians said they were likely to buy a hybrid or electric vehicle in a recent survey by Roland Berger – more than in the U.S. or Australia.
Last October, TPG’s Jim Coulter cited “significant momentum around India’s EV movement” when the firm’s climate fund, along with Abu Dhabi’s ADQ, invested a combined $1 billion last October in a new unit of Tata Motors to build out passenger EVs and charging stations.
EV makers are adopting lightweight aluminum in lieu of steel to boost vehicle performance and range. Sortera Alloys of Fort Wayne, Ind. has raised $10 million to support its AI-based aluminum recycling business. Detroit-based Assembly Ventures led the Series B round, with participation from existing investor Breakthrough Energy Ventures and aluminum partner Novelis.
Separately, Inglewood, Calif.-based Zeem Solutions pulled in $50 million from energy infrastructure investor ArcLight Capital Partners to expand its EV “fleet-as-a-service” offerings.