May 12 (Bloomberg) -- Sinopoly Battery Ltd., a Hong Kong-based battery producer, agreed to invest $42 million in Smith Electric Vehicles Corp. and take an equity stake in the electric-truck manufacturer.
Sinopoly will also become Smith’s exclusive battery supplier, the Kansas City, Missouri-based truck company said today in a statement. The companies didn’t specify the size of the equity stake.
Smith has received $2 million and will get the remaining funds in two tranches as milestones are met over the next few months. The company makes medium-size trucks for commercial customers.
“Demand for all-electric commercial vehicles is rapidly increasing in China,” Smith’s Chief Executive Officer Bryan Hansel said in the statement. “This investment provides both companies with the opportunity to leverage the synergies between our operations.”
Production at Smith’s factory in Kansas City is expected to resume midyear. It was halted in the fourth quarter as the company incorporated cost-saving changes to its supply chain, according to the statement.
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