Two Japanese automakers unveiled today measures to boost their capacity to procure batteries, with Nissan Motor Co. saying it will acquire one of its key suppliers, as the producers look to accelerate the development of electric vehicles.
The announcements come as automakers worldwide expand their efforts to roll out the less-polluting, electrified cars amid stricter environmental regulations, said Kyodo News.
Nissan said it will acquire lithium-ion battery maker Vehicle Energy Japan Inc. for an undisclosed sum to secure a stable supply of batteries and facilitate the development of next-generation batteries.
The automaker said it will buy the 47 percent stake in Vehicle Energy Japan held by the state-backed fund INCJ Ltd., and purchase more shares to be issued by the battery maker.
Vehicle Energy -- which is based in Hitachinaka, Ibaraki Prefecture -- is currently providing lithium-ion batteries to Nissan vehicles such as its flagship compact car Note.
With the deal, Vehicle Energy will become a consolidated subsidiary of Nissan, and its existing shareholders Maxell Ltd., another battery manufacturer, and Hitachi Astemo Ltd., an auto parts maker, will continue to hold their stakes, according to Nissan.
Also on Wednesday, Honda Motor Co. said its Chinese unit will set up a joint venture later this month with local automakers Dongfeng Motor Corp. and Guangzhou Automobile Group Co. to jointly procure EV batteries.
The Japanese automaker said it will strengthen its partnership with Chinese automobile battery giant Contemporary Amperex Technology Co., commonly known as CATL, to beef up its battery supply chain.
