The Sinoply Battery company in Hong Kong has invested $42 million into Smith Electric of Kansas City, taking an equity stake and becoming the electric truck maker’s exclusive battery supplier. The agreement has Sinoply taking an unspecified ownership stake in Smith Electric, but not controlling shares.

The agreement came with an immediate $2 million infusion into Smith in order to get the company back on track towards re-opening its Kansas City production plant and meeting specific milestone goals in order to receive the remaining funds, which will come in two phases over the coming months.

It’s expected that the agreement and meeting of the milestones will result in Smith gaining a partner in China with the likelihood that the company would begin selling trucks there.

Smith Electric expects to resume production at its facility in Kansas City this summer. Production ended December 31 when money for the company began to dry up.

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An automotive enthusiast for most of his adult life, Aaron has worked in and around the industry in many ways. He is an accredited member of the Rocky Mountain Automotive Press (RMAP) and freelances as a writer and journalist around the Web and in print. You can find his portfolio at AaronOnAutos.com.

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