Nissan, NEC to Put $1.1 Billion Into Battery Manufacturing Business

By John O'Dell December 29, 2008

NECNissanPac.jpg We're talking about EV battery manufacturing and development  in the U.S., but they're doing it in Japan.

Nissan Motor and NEC Corp. reportedly have agreed to pump  almost $1.1 billion, into Automotive Energy Supply Corp., their previously announced joint venture for manufacturing lithium-ion battery packs (right) for electric and hybrid cars.

If the Nikkei business daily report is accurate, this will be the fourth major battery venture in Japan: Toyota has teamed with Matsushita Electric, Honda with Sanyo and Mitsubishi with GS Yuasa.

Nissan has an agreement with its French partner, Renault, to begin producing electric vehicles by 2010, and needs an assured battery supplier. The Japanese model calls for important components for a Japanese-built vehicle to be developed and produced at home when possible.

The deal, according to the Nikkei report as reviewed by analysts at Global Insight, calls for the Nissan-NEC partnership to ultimately produce sufficient batteries to supply 200,000 hybrids and EVs a year, with initial production of 13,000 battery packs a year to begin in 2009.

John O'Dell, Senior Editor

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