Under the grant, the company will be eligible to receive reimbursement of 50% of qualifying expenditures for the purchase of facilities, tooling and manufacturing equipment, and for engineering related to product qualification and testing.
Assets acquired using DOE funding may be subject to reimbursement at a later date if the fair value of the asset on the date of disposition exceeds $5,000. The amount of any such reimbursement shall be equal to 50% of the fair value of the asset on the date of disposition.
The contract also provides for the reimbursement of qualifying pre-award expenditures incurred after August 5, 2009. Reimbursements under this provision were approximately $4.5m. The award requires the company to provide detailed reports to the DOE on how funds are deployed and the number of jobs saved or created due to receipt of the DOE funding.
Donald French, treasurer and chief financial officer of UQM Technologies, said: ”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.”
