Japanese automaker Nissan has agreed to sell its electric battery business to GSR Capital, a Chinese investment firm, for an undisclosed amount.
As per the agreement, Nissan will be selling its battery subsidiary Automotive Energy Supply Corporation (AESC) along with its battery manufacturing plants in the US at Smyrna, Tennessee, owned by Nissan North America, its plants in England including Sunderland, owned by Nissan Motor Manufacturing (UK).
Apart from these, Nissan’s Japanese battery development and production engineering operations located in Oppama, Atsugi and Zama will also be sold to GSR.
Nissan stated that the employees working at all of the facilities covered under the deal, including the ones at Zama, Sunderland and Smyrna will continue with their respective employment. After the acquisition, the headquarters and the business development centres of the battery business will continue to be located in Japan.
The automaker said that it will complete the transaction by first taking full control of AESC by acquiring the combined 49% minority holding held by NEC and its wholly owned battery and electrode subsidiary, NEC Energy Devices (NECED).
NEC has also agreed to the sale of AESC shares to Nissan. It is also negotiating with GSR for the sale of NECED. The transaction is still subject to regulatory approvals and is expected to be completed by the end of this year.
Nissan president and CEO Hiroto Saikawa said: "This is a win-win for AESC and Nissan. It enables AESC to utilize GSR's wide networks and proactive investment to expand its customer base and further increase its competitiveness.
“In turn, this will further enhance Nissan's EV competitiveness. AESC will remain a very important partner for Nissan as we deepen our focus on designing and producing market-leading electric vehicles."
GSR Capital chairman Sonny Wu said: "The acquisition of AESC represents an important step for us in the new energy vehicle industry chain. We plan to further invest in R&D, expand existing production capacity in the US, UK and Japan, and also establish new facilities in China and Europe, enabling us to better serve customers around the world.
“With these capabilities and plans added to the battery business' already skilled workforce, high technical capabilities and proven product-quality track record, we will be in a very good position for growth.
