Westborough Firm's Venture Funding to Aid China Growth

A local company that makes battery cells and related products has received a $30 million cash infusion as it races to build enough capacity to meet rising demand from electric vehicles and other innovations, especially in the Far East. 

said GSR Ventures will invest $30 million into the Westborough-headquartered company, funds that will be used to augment $125 million in funding announced in September.

Those funds were immediately earmarked for a rapid expansion in manufacturing capabilities in China, where the company also won approval from the Chinese government to expand operations.

GSR Ventures led the funding along with Oak Investment Partners and Foundation Asset Management. 

The investment follows Boston-Power’s September 2011 announcement of $125 million in growth capital and Chinese government stimulus programs – comprising a combination of grants, low-interest loans and related financial and tax incentives – and is being used to scale manufacturing, research and development, and business development activities in China for the company’s award-winning energy storage technology and products.

Moving rapidly to capitalize on its expanded opportunities in China, Boston-Power recently broke ground on its new manufacturing site in Liyang that it hopes to have operational by the end of 2012. The new factory will be capable of producing 400 megawatt hours (MWh) of lithium-ion battery cells annually.

Though it will also accelerate research and development activities in China, Boston-Power said its Westborough-based will continue to be responsible for intellectual property development, research and development, global customer support, sales and business development and partnerships with advanced research organizations in the Boston area.