"Detroit Electric-Proton EV Deal Reportedly Set To Close " Green Car Advisor

Detroit Electric-Proton EV Deal Reportedly Set To Close

Malaysian automaker Proton Holdings is set to sign a long-awaited EV deal with Dutch battery developer and would-be electric vehicle manufacturer Detroit Electric next week, Reuters news service reports.

The $331 million pact apparently culminates an agreement announced last year that called for Proton to supply the vehicles with Detroit Electric developing and manufacturing the batteries.

Detroit Electric, which once was a U.S. company that from 1915 through 1939 made electric cars, is headed by former Lotus Engineering Chief Executive Albert Lam, who acquired rights to the name last year and has set up an R&D facility in Holland. Proton, Malaysia's national auto company, owns Lotus.

While details of the EV-manufacturing deal were not disclosed, it is expected the cars would be sold in Malaysia.

In its September, 2008 announcement, Detroit Electric said it would begin testing electric cars by the end of 2009, using vehicles supplied by Proton.

Lam also said at the time, though, that Detroit Electric, which is owned by a group of American, Dutch and Malaysian investors, ultimately would build its own cars.

Separately, Proton's Lotus announced in January that it would manufacture its own electric car in Britain, but didn't specify a battery supplier.