Nissan Motor sells battery unit to Chinese renewables firm Envision Group

It said it wants to focus on developing electrical vehicles.

Nissan Motor will sell its battery business to Chinese renewable energy firm Envision Group for an undisclosed amount.

Nissan Motor will first overtake the battery business by buying all shares of NEC Corporation, and then transfer them to Envision. Nissan Motor will then own 25% of the new company to be formed by Envision.

The battery unit covers Nissan’s pouch-type lithium-ion battery business and Automotive Energy Supply Corporation’s LEAF electrical vehicle (EV) battery pack.

According to Japan Today, this followed the cancellation of a plan to sell the battery unit to Automotive Energy Supply Corp, and other battery operations to GSR Capital. The Chinese investment firm cited the lack of necessary funds.

“The transaction will enable Nissan to concentrate on developing and producing market-leading electric vehicles (EVs) – in line with the goals set in our midterm plan Nissan M.O.V.E. to 2022,” the company said.