Ideanomics has now increased its ownership to 24% in the battery-powered, electric tractor maker

Solectrac eUtility Angle Field

Solectrac is a developer and distributor of 100% battery-powered, electric tractors. (Credit: PRNewsfoto/Solectrac,Ideanomics)

Ideanomics has announced the acquisition of additional stake in Solectrac, a California-based e-tractor company, with an investment of $1.3m.

The latest investment follows the acquisition of 14.7% stake in Solectrac for the consideration of $1.3m last month. The investment marked Ideanomics’ first in a US-based original equipment manufacturer (OEM).

With the additional investment, Ideanomics will now increase its ownership to 24%, which is estimated to reduce nearly 22% post-money when the additional third-party investment is finalised.

The transaction is expected to be concluded in the coming weeks.

Ideanomics CEO Alf Poor said: “We are very pleased to increase our investment in Steve and the Solectrac team, and we welcome the investment interest from funds looking to deploy capital in the clean energy and EV sector.

“We believe Solectrac has enormous potential and, given the uptick in both product inquiries and investment interest they are seeing, we exercised our rights to increase our stake so we can help Solectrac scale to meet anticipated market demand.”

Solectrac secured grants from IUSSTF and NSF

Established in 2012, Solectrac is a developer and distributor of 100% battery-powered, electric tractors, which is an alternative to diesel tractors for agriculture and utility operations.

Initially, Solectrac has received grants from the Indian U.S. Science and Technology Fund (IUSSTF) and the National Science Foundation (NSF).

The tractors manufactured by the company allows farmers to power them by using the sun, wind, and other clean renewable sources of energy.

Solectrac CEO and founder Steve Heckeroth said: “We are excited to work with Ideanomics to accelerate progress toward a cleaner, healthier future.”