With the $115.3 million in new private equity funding raised, Fisker Automotive plans to develop its Karma plug-in hybrid and lower-cost electric vehicles. Fisker needed the funding in order to access a $528.7 million low-cost loan from the US government granted to the company last September to help fund its expansion plans.

Fisker revealed that A123 Systems Inc., which signed a deal this week to supply lithium-ion battery packs for the Karma, participated in the funding round. Other investors include Silicon Valley-based Kleiner Perkinds Caufield & Byers, one of the early investors of the three-year-old startup, and Ace Investments. In a statement, CEO Henrik Fisker said that being able to raise $115 million in these times “speaks volumes about the value of [its] business model and the vast potential of plug-in hybrids.” Set to go on sale in September, the Karma is able to travel 50 miles on a single charge. It is priced at $87,900 and it will be built in Finland by Valet Automotive.