Dutch electric bus manufacturer Ebusco has secured a €5 million investment from Chinese battery maker Gotion as part of a strategic partnership aimed at stabilizing Ebusco’s finances and ensuring supply chain continuity.
Under the terms of the agreement, Gotion will acquire a 9.3% stake in Ebusco through the purchase of rump shares. If insufficient shares are available, an extraordinary general meeting in early 2025 will determine whether additional shares can be issued exclusively for Gotion. The deal also grants Gotion board representation, with rights to appoint members to Ebusco’s Supervisory and Management Boards, subject to shareholder approval.
The investment comes with conditions prohibiting Ebusco from issuing further shares to third parties, solidifying Gotion’s role as a key strategic partner. Ebusco plans to use the funds to address outstanding payments owed to Gotion, ensuring the continuation of critical battery supplies.
The partnership highlights Ebusco’s ongoing financial struggles, with a reported €60 million loss in the first half of 2024. Despite a strong order book of over 1,600 electric buses, the company managed to deliver only 98 vehicles in the first half, leading to missed deadlines and lost contracts.
The financial injection by Gotion not only secures immediate payment for existing battery orders but also underscores the interdependence of the two companies. Gotion aims to support its customer while strengthening its own market position through this investment.
Ebusco’s leadership underwent a significant shake-up in September, with German executive Christian Schreyer replacing former CEOs Peter Bijvelds and Michiel Peters, who were dismissed after failing to achieve a financial turnaround. The investment from Gotion provides a lifeline for Ebusco as it seeks to overcome production delays and financial challenges while delivering on its commitments.
The deal represents a critical step for Ebusco to stabilize operations, with the added backing of Gotion offering a potential pathway to recovery in a competitive electric bus market.
