(Yicai Global) March 9 -- Autel, a Chinese supplier of automotive smart testing gear, will invest CNY276 million (USD40 million) to build an electric vehicle charging pile plant in the United States.

The new production base will be in North Carolina, the Shenzhen-based company announced late yesterday. The firm has already signed a land purchase agreement for the project, it added.

The move aims to meet growing demand for charging piles in the United States and reduce trade friction risks, as Autel's export sales channels to the US are no longer profitable since the country increased trade restrictions, it noted.

The installation of charging piles as a key facility in the new energy vehicle industry has lagged behind the number of NEVs in the US, so installations are expected to increase in the next few years, Autel said.

Autel also announced a CNY806 million (USD116 million) private placement of shares yesterday. CNY205 million will be used to fund the charging pile project, CNY359 million will be invested in the research and development of charging pile technologies in China, and the remaining CNY241 million will supplement the firm’s working capital.

Autel researches, develops, produces, and sells automotive smart diagnosis, detection, and analysis systems and electronic components. In 2021, its revenue from the North American market accounted for about 47 percent of its total, according to the firm’s earnings report. It did not disclose any specific data about its charging pile business revenue.

Shares of Autel [SHA: 688208] fell 2.1 percent to close at CNY33.82 (USD4.85) today.

Editor: Futura Costaglione