European Batteries has raised €13.7m from a group of investors which will enable the company to move from early-stage to industrial production.
Finnish Industry Investment, Fennia Group, EM Group and private investors have subscribed for European Batteries shares in connection with a directed share issue organised by the company.
European Batteries develops and manufactures large, rechargeable lithium-ion based prismatic cells and battery systems. The batteries are used as an energy source in large electric and hybrid vehicles, such as buses and delivery vans, and heavy industrial machines and ships. Large lithium-ion battery systems are claimed to provide an efficient solution for reserve power systems and large scale energy storage systems.
The current round of financing enables the company to move from early-stage production to industrial production. It also provides the necessary resources for building up an international clientele and partnership network.
Juha Marjosola, CEO of Finnish Industry Investment said: ’We expect the battery systems market to grow as the demand for electric vehicles and other clean technologies accelerates. European Batteries is a significant industrial project in the field of new clean technologies. It is the first of its kind in Europe and offers a challenging development task in the high-risk technology field.’
European Batteries currently employs some 70 people in Espoo, Tuusula and Varkaus in Finland. The company started the production of prismatic cells and battery systems in its Varkaus manufacturing unit in the autumn 2010. The expected turnover for 2011 is approximately €15m.
Jukka Koskinen, CEO of European Batteries comments: ’The company is pleased to get new investors on board to develop a Finnish growth company in a new sector and developing market.’