Nissan in talks with Panasonic, others

Wants to sell 51% stake in car battery manufacturing venture

TOKYO: Nissan Motor Company is in talks with Panasonic Corp and overseas companies including Chinese firms over the possible sale of its controlling stake in a car battery manufacturing venture, sources said.

Two people with knowledge of the matter said on Saturday that the Japanese automaker wants to sell its 51% stake in Automotive Energy Supply Corporation, which makes lithium-ion batteries for electric vehicles. The company is jointly owned by NEC Corporation.

“Nissan is looking to sell the company because it would be cheaper to buy batteries for its electric vehicles including its Leaf model from other makers,” reported the Nikkei daily on Friday. The newspaper did not say where it had obtained the information.

Talk of the sale “is speculation, and is not based on any announcement by us”, Nissan said in an email. Spokesmen for Panasonic and NEC declined to comment.

Competition to supply batteries for electric vehicles is heating up due to expectations that a growing number of lower emission cars will be produced in the coming years.

Tesla Motors, which currently procures batteries for its electric vehicles from Panasonic, is planning to boost its total vehicle production to 500,000 in 2018 - two years earlier than its original target.

Nissan and Renault SA, under Carlos Ghosn, who heads both companies, have bet more heavily on electric cars than mainstream competitors. In 2009 the two companies pledged to invest 4 billion euros ($4.43 billion) to build models including the Nissan Leaf compact and as many as 500,000 batteries per year to power them.

Published in The Express Tribune, August 7^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.