Nidec Corporation will build a flagship factory to produce its E-Axle traction motor system in the city of Pinghu, Zhejiang Province in China. The new factory to be built will be Nidec’s fifth traction motor-related production site, and the fourth E-Axle assembly plant, in China. Construction is planned to start in October 2022, and production is planned to start in October 2023.
As Nidec’s “flagship factory” for its E-Axle business, not only will the facility assemble and produce E-Axle units, but it will also operate as an EV-dedicated plant that consolidates the Nidec Group’s component businesses (e.g., inverters and gears), with a maximum annual production capacity of one million units.
Rendering of the plant
As Nidec aims to achieve its 2030 sales target of ¥10 trillion (US$78 billion), its automotive business, the traction motor business in particular, plays a pivotal role.
Nidec has so far sold more than 370,000 units of E-Axle, the traction motor system that Nidec started producing in April 2019. In addition, based on the forecast that the fiscal year of 2025 will be the critical turning point to see a surge in the demand for traction motors, Nidec plans to sell 3.6 million units of E-Axle with a planned production capacity of 7 million units for the same fiscal year.