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EHang Eyes Expansion within Qingdao Through New Partnership

by jeremy@globalsky.media
EHang Eyes Expansion within Qingdao Through New Partnership

Autonomous aerial vehicle (AAV) technology company EHang has announced a strategic partnership with Qingdao West Coast New Area, a 2,096 km-large coastal area located on the west side of Jiaozhou Bay in Qingdao. This collaboration comes with a US$10 million equity investment and a potential additional future investment of US$10 million.

The partnership is part of EHang’s plans to further its AAV business and the urban air mobility industry within Qingdao and to conduct future test flights in the province.

Qingdao West Coast New Area’s investment arm will initially invest a total of US$10 million in the company through a private placement of newly issued Class A ordinary shares of the company. The private placement is expected to close in the first quarter of 2023, subject to mainland China-based investment-related regulatory approvals.

“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,” said Guilong Shi, Deputy Director of the Administrative Committee of Qingdao West Coast New Area.

Xin Fang, Chief Operating Officer of EHang, commented, “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.”

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