Farizon, the new energy commercial vehicle unit of Chinese automaker Geely, said on Sunday that its methanol-hydrogen electric vehicle unit has secured $200 million in its latest funding round.
Chunqing Technology, a wholly owned subsidiary of Farizon, is engaged in the research, development, and manufacturing of next-generation methanol-hydrogen electric vehicles (MHEVs).
It has completed its third funding round led by state-owned Hangzhou Hi-Tech Financial Investment Group, according to a company release on Sunday.
The round also saw the participation of an industry fund under the government of the Nanxun district in Huzhou city of Zhejiang province; and new energy battery materials maker Xiangtan Electrochemical Scientific, which is under the control of the government of Xiangtan of Hunan province, among others.
Chunqing plans to use the proceeds to further develop the MHEVs ecosystem and technologies.
MHEVs use methanol as a liquid hydrogen carrier. Methanol can be reformed to produce hydrogen for various applications, including fuel cells, which diverges from traditional internal combustion engine vehicles (ICEVs) by eliminating the need for petroleum-based fuels.
MHEVs typically fare better than battery electric vehicles (BEVs) in cold weather conditions. The time it takes to recharge the vehicles is also shorter compared to the time taken to charge an EV battery. These types of vehicles also enjoy longer driving range and better performance under cold climates compared with BEVs.
Despite the potential, MHEVs only account for a small share of China’s new energy commercial vehicles market compared to BAVs.
With new energy commercial vehicles hitting a market penetration rate of 29% in June, BAVs account for 27.9% of the market share, followed by plug-in hybrid electric vehicle (PHEV)’s 0.9% and fuel Cell Electric Vehicles (FCEVs)’s 0.2%, according to data from industry body the China Automobile Dealers Association (CADA).
Previously, Chunqing secured $100 million in its inaugural funding round at a pre-money valuation of $1 billion from several strategic investors and institutional investment companies in January 2024.
