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Spencer: Ecotality - Plugging In to China's Fledgling Electric Car Market
In February, I highlighted concerns that a lack of charging stations may stymie development of China’s fledgling electric car market. However, the recent announcement of a joint venture between Ecotality (OTC:ETLY) and Shenzhen Goch Investment Ltd. to develop charging stations suggests that electric cars will not be plugless for long.
The deal, worth $15 million, will result in the development of manufacturing capacity for charging stations and will provide Ecotality, which has been developing electric vehicle charging for more than a decade, with a spring board into a car market estimated by Pike Research to grow from nothing now to approximately $1 billion by 2015.
This deal shows that while the car industry may come to be dominated by state-owned behemoths, there is still potential for money to be made in spin-off industries.
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Spencer Sheehan edits sector research.
