EverSource Capital, a climate impact fund, has announced an investment in Lithium Urban Technologies, an electric vehicles (EV) company, for a majority stake.

Lithium Urban operates a fleet of four-wheeler passenger EVs and associated charging infrastructure. The company operates across 15 plus cities in India, with over 2,000 EVs and a network of 600 plus charging stations. It also recently expanded its offerings to corporate clients providing large form factor buses and freight management solutions using a 100% electric fleet.

With this investment, Lithium Urban aims to roll out over 10,000 application-specific EVs in the next 18-24 months coupled with required charging infrastructure and provide a platform for drivers to own EVs without demand or supply-side constraints.

Lithium Urban will use the funding to enhance the technology platform, expand its vehicle fleet, develop new vehicle platforms, and work on rapidly expanding its charging infrastructure across India.

The CEO of EverSource Capital, Dhanpal Jhaveri, said, “With Lithium’s unique, differentiated, and competitive e-mobility offering, we aim to build it into a rapidly scalable, world-class business generating superior financial returns. We foresee a huge synergistic benefit with our other platform, ‘GreenCell Mobility,’ regarding co-development of new application-specific electric vehicles, rolling out and cross utilization of charging and energy infrastructure, sharing best practices, and learnings between two leading electric fleet owner-operators in India.”

EverSource Capital is a 50:50 joint venture between EverStone Capital — an investment group focused on India and Southeast Asia, with over $6 billion assets under management, and Lightsource BP — a solar energy projects developer with over 20+ GW under development.

Earlier this year, Eversource announced the financial closure of one of India’s largest climate impact funds, the Green Growth Equity Fund, at $741 million. The funds are invested in combating climate change focused on energy decarbonization and resource efficiency while generating investment returns.

In January this year, the Ministry of Power revised the ‘Charging Infrastructure for Electric Vehicle Guidelines’ to accelerate the e-mobility transition. The guidelines intend to help EV charging infrastructure companies set up charging stations across the country highways, with easy access to connectivity. The public charging stations will be rolled out in two phases over the next five years.