China's GSR Capital to invest $500 million in Sweden EV maker NEVS

(Reuters) - Chinese investment firm GSR Capital said on Wednesday it had signed an agreement to invest $500 million in Swedish electric car maker National Electric Vehicle Sweden (NEVS).

GSR also said it plans to start production of electric vehicle batteries on NEVS premises in city of Trollhättan in Sweden.

The company said the investments would be made as a convertible loan that might be converted to NEVS shares.

“We have been looking for a long term partner and GSR Capital is a very good match, in many ways”, NEVS CEO Stefan Tilk said.

Although the batteries produced at the plant will be aimed at NEVS vehicles, other Swedish electric vehicle makers would also be able to procure them, GSR said.

Reporting by Sangameswaran S in Bengaluru; Editing by Richard Balmforth