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EHang has entered into a strategic partnership with Qingdao West Coast New Area, one of China's national new areas in Shandong province, that comes with a binding $10,000,000 equity investment and a potential additional investment of another $10,000,000 in the future. On the back of this, EHang plans to develop its AAV business and the UAM industry and market in Qingdao with the goal of making Qingdao a world-class UAM application demonstration area.
Additionally, EHang intends to establish a northeast Asia regional headquarters as well as a national firefighting business centre in Qingdao West Coast New Area. The area will facilitate the local governments' applications of EHang's full range of products while providing comprehensive support to the company's local business operations, sales and services, production and infrastructure construction.
Qingdao's investment arm will invest the first $10m through a private placement of newly issued Class A ordinary shares.
EHang COO Xin Fang says: “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.”
“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,” says Qingdao deputy director of the administrative committee Guilong Shi.
