Published on August 3rd, 2017 | by James Ayre0
NEC Exiting Battery Business, Likely Selling Its Division To Chinese Investment Group
August 3rd, 2017 by James Ayre
If the deal goes through, then that means that NEC will have completely exited the expensive lithium-ion business — presuming that the sale of NEC’s interest in its automotive battery joint venture with Nissan Motor to GSR also goes through.
As it stands, the company currently sells electrodes used in lithium-ion batteries for Nissan’s LEAF electric cars, amongst smaller contracts. Annual sales total around ¥15 billion.
With regard to the new deal, the offer price is reportedly around ¥15 billion (~$135 million).
Here’s more on the deal: “The move comes as (many) countries look to accelerate the shift to electric vehicles and other non-polluting cars. Both France and the UK have announced that they will ban the sale of new gasoline- and diesel-powered cars by 2040. The global market for rechargeable batteries for environmentally friendly vehicles is forecast to reach nearly $60 billion in 2025, up fivefold from last year, according to Japanese research company Fuji Keizai.
“Panasonic, the world’s top player in automotive lithium-ion car batteries, supplies Tesla and Toyota Motor and continues to make massive investments in the field. But NEC relies almost exclusively on Nissan, which is now looking to expand its battery supplier network. Given the amount of investment required to keep its battery business competitive, and the lack of synergies with its other operations, NEC has decided to leave the space.”
That makes sense. Further consolidations in the automotive battery industry over the coming years seem likely.
Image via NEC Energy Devices