Nissan and Envision AESC to build $460 million car-battery plant in Japan.
[Business Hala] Nissan Motor Co. is unveiling plans for a second car-battery factory in several months, betting that demand for electric vehicles will justify the investment in additional capacity.According to a document seen by Businesshala, Envision AESC and Nissan jointly plan to be built in Ibaraki Prefecture, north of Tokyo, with an initial investment of 50 billion yen ($456 million) and an annual production capacity of six gigawatt-hours in 2023. will operate the plant. . Plans to be announced include spending up to 100 billion yen and increasing production to 18 gigawatt-hours after about five years, or enough for about 163,000 Nissan Leaf electric vehicles.
Last month, Nissan and Envision AESC unveiled plans to build a £1 billion ($1.4 billion) EV-manufacturing center in the UK. Automakers globally have struck a number of deals this year to add battery-manufacturing capability as they move away from gasoline-burning engines.
Nissan and Envision AESC to Build $460 Million Car-Battery Plant in Japan
Ford Motor Company and South Korea’s SK Innovation Company are manufacturing electric-vehicle batteries at two factories in the US, while Volkswagen AG has committed $29 billion to challenge Tesla Inc.
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AESC used to be part of Nissan until 2018, when the Japanese automaker sold a majority stake in the electric-car battery business to Shanghai-based sustainable-energy company Envision Group. Nissan still holds 20% of AESC.
Azusa Momose, A Nissan spokeswoman declined to comment on the plans, but said:
We are not able to comment directly on Envision AESC’s plant in Ibaraki Prefecture, but they are one of our key partners, as they Leaf has been a battery supplier for vehicles for over 10 years and is planning to build a new battery plant in the UK adjacent to the Sunderland plant.
Although Yokohama-based Nissan wants to keep a closer eye on battery development and ensure access to critical EV components, it is now exploring ways to increase its stake or deepen its alliance with Envision AESC, a company with knowledge of the matter said. said the person.
Originally called Automotive Energy Supply Corp., the car-battery maker was created in 2007 as a joint venture between Nissan and NEC Corp as Nissan prepared to introduce the Leaf, which had once been a subsidiary of Tesla. Before dominance had led sales.
Nissan chief executive Makoto Uchida said in a Businesshala television interview last month that the UK project was “the beginning in our electrification strategy”. Nissan is planning to roll out a new EV called the Aria, though the launch of the flagship SUV was pushed back later this year by an originally planned rollout of “mid-2021”.
In an interview with Businesshala Television, the CEO said he is confident Nissan will maintain profits despite the headwinds.
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Envision Group is also expanding its own battery business, announcing plans to spend 2 billion euros ($2.4 billion) on a plant in northern France to power EVs made by Renault SA, Mitsubishi. Nissan partners in a global automaking alliance with Motors Corp.
Nissan and Envision AESC’s plans to build the Ibaraki plant were first reported by Japanese broadcaster NHK in May. According to the document, Nissan’s Chief Operating Officer Ashwini Gupta will attend a foundation stone-laying ceremony for the factory.
Nissan, AESC to Build $460 Million Car-Battery Plant in Japan, August 3, 2021
