Business

AROUND THE REGION

Boston-Power adds $30m for China

Westborough battery maker Boston-Power Inc. will disclose today that it raised another $30 million in private financing to expand in China.

In all, the company has raised $155 million from Chinese government and private sources to build a research and development center in Beijing and a plant in the Shanghai corridor, where it will make lithium-ion batteries for electric vehicles. Construction has begun on the plant, and Boston-Power officials say they have started hiring the first of several hundred employees.

At one time, Boston-Power hoped to expand in Massachusetts, but abandoned those plans in favor of China after losing out on $100 million in federal stimulus money.

Advertisement

The funding for Boston-Power’s expansion in China comes in large part from GSR Ventures, a venture capital firm that primarily invests in growing technology companies in China. Chinese central and local governments are also providing Boston-Power with a combination of grants, low-interest loans, and tax incentives. As part of the deal, Boston-Power has agreed to hire new chief executive and chief financial officers based in China.