April 16, 2007

Nissan and NEC form new company to build advanced batteries

Tokyo, Japan – Nissan Motor Company, NEC Corporation and its subsidiary NEC TOKIN Corporation have signed an agreement to establish a joint-venture company to focus on lithium-ion batteries. The new company, Automotive Energy Supply Corporation (AESC), expects to have wide-scale automotive application of the batteries by 2009.

Nissan and NEC Group will invest 490 million yen (about US$4.1 million) in the partnership, which is expected to begin operations by the end of April 2007 and will operate as an independent company. The company will focus on the development and marketing of advanced lithium-ion batteries, designed to power future generations of electric-powered vehicles, and will expand after one year to include mass production and sales.

NEC and NEC TOKIN bring expertise in cell technology and battery manufacturing, while Nissan will focus on the cell stack for real-world application in electric-powered vehicles. AESC’s core product will be batteries, and the company will be free to market its products to other potential customers in the auto industry.

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