China’s XPeng said it led an investment into a new $200 million fund,
focused on backing electric vehicles and “frontier technology” start-ups.
The fund, called Rockets Capital, that counts a number of high-profile venture capital players among the investors including IDG Capital,, Sequoia China, and GGV Capital.
Rockets Capital will focus on “venture and growth stage investments in Smart EV industry value chain, clean energy, and frontier technology areas.”
XPeng ‘s “frontier technology” would include several areas that fall under this term, including artificial intelligence and semiconductors. Accoridng to CNBC
*Xpeng tweet on latest EV model in EU
— XPENG (@XPengMotors) March 16, 2022
The latest R&D fund comes as the electric vehicle industry is expected to continue its growth.
Market research firm Gartner forecasts 6 million electric cars will be shipped this year versus 4 million in 2021.
Recently global financial markets have also seen large volatility in EV segment.
Bing Yuan, from Rockets Capital, said the closing of the fund is a “testimony that in the constantly evolving investment industry, the low carbon economy and technology-driven development are the consensus investment trends.”
Rockets Capital will operate independently from XPeng.
The electric car company said the fund will leverage XPeng’s “industry expertise and resources” further incubating technological innovation.