Qingdao investment arm invests $10m in EHang
EHang and Qingdao West Coast New Area have signed off on a strategic partnership that will see $10m invested in EHang with potential for another $10m in the future.
EHang plans to market in Qingdao with the goal of making it a “world-class” UAM application demonstration area. Also, the OEM intends to establish a northeast Asia regional headquarters and a national firefighting business centre in Qingdao.
Guilong Shi, deputy director of the Administrative Committee, Qingdao West Coast New Area, said: “EHang is a global leader in the eVTOL sector ranging from hardware to software. Its AAV products and fleet operations are fully in line with Qingdao’s development requirements for smart, eco-friendly and highly efficient UAM solutions. We believe it will be a ‘win-win’ cooperation with our joint efforts to advance high-end industries and aviation sectors in Qingdao and to create a beneficial UAM industrial ecosystem.”
Qingdao investment arm’s initial investment will be made through a private placement of newly issued Class A ordinary shares of the EHang. The private placement is expected to close in the first quarter of 2023, subject to the receipt of certain investment-related regulatory approvals.
Xin Fang, COO, EHang, said: “This strategic investment and business partnership is a significant milestone for EHang’s long-term growth. With more funding and strong product demands in the Qingdao local market, which is estimated to reach the level of RMB100 million in two years, EHang expects to accelerate the development of Qingdao’s AAV industry through new aviation business and low-altitude economy. We believe our cooperation will propel Qingdao to be a world-class, innovative UAM application demonstration area with comprehensive AAV industrial chains and commercial operations.”