Plans to sell the Think electric car in the U.S., and possibly build them in Michigan, are being revived with the Norwegian company's imminent emergence from bankruptcy protection.

Production of a two-seat, all-electric car in Norway was halted when Think sought bankruptcy protection in December. On Thursday, courts there approved the debt settlement plan of the carmaker, enabling it to exit court protection.

"Effectively, this puts Think back in business and in a position to resume normal operations in terms of the manufacture and sale of new electric vehicles," Chief Executive Officer Richard Canny said in a statement announcing the investment needed to ramp back up.

The automaker wants to build and sell the Think City, which has a range of 112 miles, in the U.S.; Michigan is on the short list of sites -- down from eight -- to make the car. A decision is expected before year's end, Think spokesman Brendan Prebo said. He would not say how many others made the cut.

The state has taken strides to establish itself as a hub for battery and electric vehicle manufacturing. Efforts moved forward earlier this month when Vice President Joe Biden announced in Detroit $1.35 billion in federal grants for advanced powertrain projects in the state.

General Motors Co. will begin production of battery packs for electric vehicles in Brownstown Township in late 2010.

One of three battery suppliers for the electric Think is A123 Systems, which plans to build a plant in Michigan. The other suppliers are EnerDel of Indiana and MES-DEA of Europe.

Michigan remains very much in the running, Prebo said, and Think has added staff to its Dearborn offices. There are now about 12 people in Michigan involved in manufacturing planning, finance, purchasing, product development, marketing and business strategy.

The Michigan Economic Development Corp. has had discussions with Think, said spokeswoman Bridget Beckman, who noted the state has had a number of successes in pursuing the advanced battery industry.

The City, which is slightly larger than a Smart fortwo, was on sale in Europe before production ceased. It has a top speed of 62 mph and its batteries need several hours to recharge. Think's goal is to produce a car priced at less than $20,000 with a $90 monthly lease for the batteries.

The carmaker requires about 60,000 square feet in an existing facility where 300 employees would make about 16,000 vehicles annually. Another 70 employees would man a planned technology center. A second phase, about 2012, calls for 60,000 cars a year and would add painting and welding equipment and establish a local supply base. Employment could increase to 700, with 150 at the tech center.

The company is also hoping for a grant from the $25 billion Department of Energy program that supports automotive retooling and advanced technology.

New investors have since been secured and the automaker has raised about $47 million in new capital and conversion of interim financing to equity. The equity transaction is scheduled to close next week, Canny said.

Ener1 Inc. of New York is the largest investor and will hold a 31 percent stake in the company. Ener1 is the parent of Indiana battery maker EnerDel. Ener1 is investing $18 million and converting an additional $3 million in debt for convertible preferred shares of Think, said CEO Charles Gassenheimer.

Valmet Automotive of Finland will be a smaller stakeholder, and production of the City will be moved from Norway to Valmet's Finnish plant. Think production is to resume in the fourth quarter. Oslo remains the corporate headquarters.

A third investor is Investinor, a Norwegian government-backed investment fund.

The plan is to launch in the U.S. with fleet customer and pilot projects next year and add retail sales in 2011. Prebo said that remains on track.