2 US hyperloop startups secure Chinese state-backed funds | Dump Trucks Charlotte NC

• Hyperloop Transportation Technologies (HyperloopTT) said it is planning a commercial line in Tongren, part of China’s Guizhou province, at a starting cost of about $300 million. Chinese state entity Tongren Transportation and Tourism Investment Group will provide half the funds, according to HyperloopTT, while private investors will be sought for the remaining half.
• Arrivo said it lined up a $1 billion credit line from Genertec America Inc., a subsidiary of a Beijing-based state entity, which will be extended to backers of future Arrivo projects. The funding can be used for projects anywhere in the world, the startup said, but could draw scrutiny from the Trump administration if used in the U.S., according to Bloomberg.

Dump Trucks Columbus OH Insight:

Since Elon Musk introduced the hyperloop concept about five years ago, the world has yet to see a completed commercial hyperloop project. These systems will be very expensive to build because of the complex technologies involved, so one of the biggest obstacles for hyperloop developers is finding enough financing to get started.

Last month, Musk’s The Boring Co. won its bid to build an express train line between downtown Chicago and O’Hare International Airport, The Chicago Tribune and others reported. The Boring Co. estimated the project will cost less than $1 billion, according to the Tribune, and in an unusual move, the columbus oh dump truck company said it will front all costs without any taxpayer contributions.

Few companies have the financial flexibility to execute these projects without funding from government and/or private investors, however. HyperloopTT is currently running a feasibility study for a hyperloop route between Cleveland and Chicago, which could result in the first public-private partnership for a hyperloop system in the U.S. Arrivo, meanwhile, is working with Colorado officials to explore an express commuter route in Denver. Both projects could face a lengthy process to secure financing, regulatory approvals and public buy-in.

In contrast, HyperloopTT CEO Dirk Ahlborn said that backing from the Chinese government for its Tongren project and minimal regulations will allow the columbus oh dump truck company to meet project benchmarks faster than it could anywhere else. President Donald Trump’s plans to curb Chinese investment in U.S. technology firms would prevent such funding from reaching U.S.-based hyperloop projects, however, in an effort to protect U.S. technology from breaches.

According to a June report from the Wall Street Journal, the Treasury Department is developing rules to block firms with 25% or more Chinese ownership from buying U.S. companies working with “industrial significant technology,” though these plans are subject to change.