(Reuters) – Nissan Motor Co to partner with China-based battery maker Envision AESC group to build new battery plants for electric vehicles in Japan and the UK and invest more than 200 billion yen ($ 1.82 billion), Nikkei reported Friday.
The Japanese automaker will start producing batteries at two new plants starting in 2024 to achieve enough capacity to power 700,000 electric vehicles per year, according to the report.
“Nissan will continue to accelerate electrification towards carbon neutrality. However, we have no further plans to announce at this time,” said a Nissan spokeswoman.
Batteries are one of the most expensive components in electric vehicles, with raw materials accounting for most of the cost.
To save costs, the Japanese automaker’s alliance partner, Renault CEO Luca de Meo, said this month the companies are in talks to collaborate more using the same battery technology.
($ 1 = 109.8500 yen)
(Report by Eimi Yamamitsu in Tokyo; Edited in Spanish by Javier Leira)