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© Nevs Business | July 03, 2018

Nevs to lose millions after problems with financier

A partner of the electric car manufacturer Nevs, investment company Beijing Zhigan Shenghou Technology, has not completed its commitments to Nevs, and the issue will now be settled in court, reports the Swedish news site Dagens Industri.
Beijing Zhigan Shenghuo Technology signed an agreement with Nevs in August 2017 to make three capital injections of a total of CNY 720 million (equivalent to USD 108 million) to become an 30 percent owner in Nevs’ Chinese joint venture.

After the handing in of an annual report it is now clear that the commitments made by the investment company have not been met. Therefore, the matter is to be solved in court.

In March of this year, Nevs signed an agreement with the Chinese investment company GSR Capital. The company has invested in battery technology and would take over Nissan's battery division with factories in Japan, the United States and the UK. However, Nissan is stopping the deal, according to a statement due to the fact that the GSR Capital does not have enough money. The deal is worth USD 1 billion.

According to the agreement with GSR Capital, Nevs will receive a convertible loan of approximately SEK 4.5 billion (USD 500 million), and GSR Capital will build a battery assembly plant in Trollhättan, Sweden. That factory would be part of Nissan's battery operations, which means it is now unclear whether there will be any factory or not.
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November 15 2018 5:25 pm V11.9.0-1