Chinese electric vehicle maker BYD has partnered with San Francisco-based energy and resource infrastructure financing firm Generate Capital to set up a joint venture to launch an electric bus leasing program in the United States.
Generate Capital announced that US$200 million will be allocated to this lease program, which will help public and private sector clients accelerate adoption of battery-powered electric buses by reducing upfront costs.
The U.S. energy efficient transportation market is expected to grow 500% over the next eight years, according to Bloomberg New Energy Finance. Today, there are approximately 345,000 electric buses on the road globally, yet the U.S. battery-electric bus stock stands at only about 300. Electric buses require higher upfront investment than conventional diesel-powered buses, limiting the adoption of electric bus technology in the U.S.
The move could help BYD to expand its battery supply for electric buses in the U.S. Just last month, BYD opened a new lithium battery plant in Qinghai, China, which will be the world’s largest factory when construction is fully complete next year. The factory is expected to produce 24 gigawatt-hours of batteries a year. The factory will provide batteries for BYD cars as well as other automakers.
“BYD’s mission is to fundamentally change the world by reducing our dependency on carbon-based fuels through the development and advancement of battery and electric vehicle technology,” said BYD president Stella Li. “This partnership will be critical in that effort by creating new financing alternatives to a broader range of clients.”
Founded in 2014, Generate Capital is a specialty finance company that builds, owns, operates, and finances infrastructure assets for energy storage, solar PV, solar thermal, energy efficiency, biomass, agriculture, and wastewater sectors. It offers standard financial products, such as asset backed lending, project finance, and asset warehouses and other short-term financing, as well as custom-tailored products.
Source: China Money Network