UQM Technologies (UQM) is getting a boost from the government this morning with a $45 million cost share grant for the advancement of electric cars, lithium batteries and all the equipment needed to produce and deploy. The company will be eligible to recover half of any costs, but may be required to pay back loans used for assets greater than $5K. The company will also need to provide detailed reports about where the money is being used and how many jobs are expected to be created.
UQM CFO Don French commented, “The receipt of this cost-shared award is a significant milestone in the launch of high volume production of our PowerPhase® electric propulsion systems for Coda Automotive and other future customers. The funding provided under this award is expected to substantially lower our cost of capital, reduce financial risk, improve product margins and lead to the creation of hundreds of new jobs. We are honored that the Department of Energy selected our company as one of seven component manufacturers, and the only small business, to receive funding under the AARA’s Electric Drive Vehicle Battery and Component Manufacturing Initiative. In addition, allowable product qualification and testing costs incurred prior to the award date will reduce net loss for the fiscal fourth quarter ending March 31, 2010, by approximately $0.9 million.”
Shares of UQM Technologies are up about 6% in premarket trading and continue to look very bullish on the daily chart.