Nissan-NEC Joint Venture Li-Ion Company Begins Full Operations

19 May 2008

Automotive Energy Supply Corporation (AESC)—the joint venture between Nissan Motor Co., Ltd., NEC Corporation, and its subsidiary NEC TOKIN Corporation created for the development and production of automotive lithium-ion batteries for a wide range of automotive applications from hybrids, electric vehicles to fuel-cell vehicles (earlier post)—has begun full operations.

The first commercial application for AESC’s li-ion batteries is destined for forklifts for small business operators in 2009. This will be followed by Nissan’s electric vehicle, to be introduced in the US and Japan, as well as Nissan’s original hybrid vehicle in 2010. By 2012, Nissan has announced its plans to mass-market electric vehicles to consumers globally, which will boost demand for batteries significantly. (Earlier post.)

AESC has also been appointed as a supplier of li-ion batteries to Project Better Place. The $200-million-backed venture aims to reduce global dependency on oil through the creation of a market-based transportation infrastructure that supports electric vehicles, providing consumers with a cleaner, sustainable, personal transportation alternative. Project Better Place and the Renault-Nissan Alliance are planning for the first wide-scale deployment of zero emission vehicles in Israel and Denmark in 2011.

AESC will invest ¥12.0 billion (US$114.6 million) over a three-year period in a manufacturing facility to be located at Nissan’s Zama facility in Kanagawa Prefecture and operational by 2009. Production capacity will be at 65,000 units with initial start-up capacity to begin at 13,000 units a year.

To support AESC’s production demand, NEC TOKIN will invest ¥11.0 billion (US$105.1 million) over the next three years at its NEC Sagamihara Plant in Kanagawa Prefecture, to mass produce lithium-manganese electrodes by 2009.

AESC will market its battery products to potential customers in the automotive industry worldwide.