Ideanomics (NASDAQ:IDEX) said it has acquired 15% of Solectrac, Inc, a California-based developer of electric tractors, for the consideration of $1.3mln.
Solectrac develops, assembles and distributes 100% battery-powered electric tractors - an alternative to diesel tractors - for agriculture and utility operations. With this investment, Ideanomics said it is expanding its global footprint in the electric vehicle (EV) industry, specifically in the category of specialty commercial vehicles.
The investment marks its first in an existing US-based OEM, and Ideanomics will assume a seat on Solectrac's board of directors.
"We are very impressed with Steve and the Solectrac team and their deep knowledge of the agricultural sector. We have been interested in this industry for some time because we knew EVs could have an immediate impact without the need for extensive infrastructure," says Alf Poor, CEO of Ideanomics in a statemen.
"Solectrac is a pioneer in the electric tractor market and shares our motivation and passion for a cleaner tomorrow."
According to Research And Markets, Ideanomics noted, the global agricultural tractor market is currently valued at $75 billion, with the North American agricultural tractor market expected to reach $20 billion by 2023.
The largest segment for agricultural tractors is the below-40HP segment, where Solectrac's initial three models address the broad needs of the market. Its tractors are specifically designed to serve the needs of community-based farms, vineyards, orchards, equestrian arenas, greenhouses, and hobby farms.
"With our zero-emission electric tractors, tractor operators don't have to choose between power and environmentally friendly practices," said Steve Heckeroth, CEO and founder of Solectrac and visionary in the renewable energy and EV industry.
"My life's work has been dedicated to creating clean, renewable alternatives to fossil fuels. Now—with Ideanomics and the company's unique experience and industry perspective—we are well-positioned to achieve these goals."
Founded in 2012 to take electric tractors into commercial production, Solectrac was incorporated as a California Benefit Corp in 2019. It has received grants from the Indian US Science and Technology Fund (IUSSTF) and the National Science Foundation (NSF). Earlier this year, Solectrac received the World Alliance Solar Impulse Efficient Solutions label from the Solar Impulse Foundation. The label was awarded for being one of the one thousand most efficient and profitable solutions that can transition society to being economically viable while being environmentally sustainable.
Ideanomics is a global company that facilitates the adoption of commercial electric vehicles and supports next-generation financial services and fintech products.
Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity, as well as financing and charging solutions. Ideanomics Capital provides fintech services that include intelligent and innovative solutions powered by AI and blockchain. Together, MEG and Ideanomics Capital provide its global customers and partners with more efficient solutions for a greener economy.
The company is headquartered in New York, NY, with offices in Beijing, Hangzhou, and Qingdao, and operations in the US China, Ukraine, and Malaysia.
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