Norway’s Think to Build Cars in Indiana

Think Global AS plans to launch production of its City electric vehicle at a plant in Elkhart County, IN, in early 2011.

The Norway-based EV maker says it will invest $43.5 million in improvements and equipment at a brownfield site to produce the City for the North American market.

Plans are to build more than 20,000 of the cars annually.

Think, which recently exited bankruptcy, launched its new-generation City model in Europe last month. The car can travel at highway speeds for more than 100 miles (162 km) on a single charge, the auto maker says.

The City is produced for European markets at a Valmet Automotive Inc. plant in Uusikaupunki, Finland. Valmet took over production from Think’s Aurskog, Norway, facility after taking an equity position in the EV builder as part of its restructuring.

The Indiana location is close to another Think partner and equity stakeholder Ener1 Inc. (31%), which is supplying batteries for the City.

“We are extremely pleased to announce plans for a second Think production location today,” says Think CEO Richard Canny. “Things are moving very swiftly for the company in Europe following the start of production in Finland and the subsequent start of sales at the end of last year. Now it’s time for us to do the same in the North American market – and there’s no better place to start than Indiana.”

Think says state incentives and a loan from the U.S. Department of Entergy will back its Indiana investment.