Better Place, an infrastructure provider for electric cars founded by former SAP executive Shai Agassi, has revealed that it has raised $350 million in fresh equity in line with a second round of financing.

Better Place's concept is based on battery-swapping stations to complement a network of charge spots so that electric cars like partner Renault's planned Zoe can expand their range without the requirement of an additional back-up engine that burns fossil fuel.

The average advanced vehicle possesses a driving range of 100 miles and a battery that takes five hours to charge.

"This is one of the largest investments made yet in the 'clean tech' sector. The value of Better Place is now estimated at $1.25 billion", the company claimed.

The investment was supported up by Morgan Stanley Investment Management, Lazard Asset Management, Israel Corp., VantagePoint Venture Partners, Offer Hi-Tech Holdings and Maniv Energy Capital.

"We are absolutely convinced that the paradigm change from cars with internal combustion engines to electric vehicles offers great possibilities for growth both in the auto industry as well as for utilities", said Stuart Gulliver, HSBC executive director and head of its Global Banking and Markets business.

The company revealed to follow the old track to begin its full commercial operations at the end of 2011, when industry partner Renault plans to offer the first car with a replaceable battery.