Nissan will partner with Chinese group Envision AESC and invest more than 200 billion yen ($ 1.8 billion) to build new battery plants for electric vehicles in Japan and the United Kingdom, with all batteries to be supplied to the Renault-Nissan-Mitsubishi alliance, is shown in an article published in the Japanese economic publication Nikkei, citing sources who wished to remain anonymous.

In 2024, the third Japanese carmaker could benefit from electric batteries from two new factories, one in Japan and one in the United Kingdom, with enough production capacity to power 700,000 electric cars annually, according to Agerpres.

As the automotive industry accelerates the transition to electric vehicles, competition for investment in key components is increasing.

Envision AESC, the seventh largest supplier of batteries for electric vehicles, will operate the new units. Envision, in which Nissan has a 20% stake, currently produces enough batteries to power 200,000 electric cars.

With the new factories in Japan and the United Kingdom, the Chinese group wants to increase its production to supply 900,000 electric cars annually. Envision will also help fund the units. Nissan is considering making joint investments and using grants from the governments of the two countries to finance the project.

Nissan currently sells 180,000 electric cars annually. The company will electrify all new models in its key markets by the early 2030s, and expects to sell more than one million electrified vehicles by the end of fiscal year 2023.