City
Please Tell Us Your City

Nissan to exit from its battery business

Nissan to exit from its battery business
Santosh Nair Santosh Nair Wednesday 31 May 2017, 17:37 PM

In the next two weeks, Nissan’s will be selling its AESC battery manufacturing business (based in Japan) to Chinese firm GSR Capital for a deal that totals 1 billion USD.

In case you didn’t know, AESC (Automotive Energy Supply Corp.) supplies cells and modules for Nissan’s LEAF, e-NV200 and some of the Renault models. If you were surprised at this move, we need to understand that Nissan has been edging away from using its own batteries for their applications for some time now. They’ve been procuring cells from LG Chem whenever required, and Nissan CEO Carlos Ghosn earlier quoted that the reason for this lay in the fact that LG Chem was simply the best battery maker at the moment.  

What really made the car maker shift from its earlier outlook of ‘build your own batteries’? It all began in 2015 when LG Chem commenced taking orders for its $145/kWh battery cells, and so it just made no sense for any car manufacturer to invest in battery production any more. And they could now just focus on making the electric vehicle. Consequently, analysts believe that GSR Capital is expected to shift some of its battery manufacturing processes to its bases in China since native car makers like Dongfeng Motor Group are ramping up on a large scale to make EVs more popular.

 

Popular Nissan Cars

View All
 

Popular Cars

View All