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Qingdao City Construction Investment Group has announced a new fund to finance infrastructure development projects in the Chinese province of Shandong.

Qingdao City Construction Investment Group has partnered with Sun Seven Stars Investment Group to raise the $7 billion as part of a three-year collaboration to strengthen the relationship between industry, innovation, and capital, to help elevate the overall economic development of Qingdao.

Of the $7 billion in funding announced, 20% will be awarded to Ideanomics to accelerate the adoption of electric vehicles (EVs).

Ideanomics will disperse the funds through its Sales-to-Financing-to-Charging model, comprising the selling, leasing and financing services for EVs and charging related energy sales to consumers.

The EVs to be purchased will replace existing gas-powered fleets in Shandong province.

In addition, Qingdao City Construction Investment Group will provide various policy and project resources.

Alf Poor, the CEO of Ideanomics, said: “The additional funds to support fleet operator sales of commercial electric vehicles in Qingdao solves one of the largest hurdles to commercial EV conversion, large-scale EV purchases.

“Innovative financing programs are a key component in enabling these EV sales, and the funds may further extend our ability to finance purchases that would otherwise not be possible for commercial fleet operators. The ability to secure competitive financing enables a faster transition over to EV, which in turn unlocks further substantial savings in both fuel and maintenance costs, as well as eliminating the fossil fuel emissions which are damaging to the environment.”

The energy transition is a hot topic disrupting the utility industry in Asia and will be a key focus at Enlit Asia which takes place in Jakarta, Indonesia from 23-25 March. For more details click here.