Nissan and NEC to Produce Li-ion Batteries by 2009

In somewhat of a surprise move Nissan and NEC announced today that they have signed an agreement to establish a joint-venture company, Automotive Energy Supply Corporation (AESC), to develop and market advanced lithium-ion batteries for automotive applications with production starting in 2009.

According to their press release:

AESC will mass produce lithium-ion batteries with a set of unique properties that makes them a highly competitive and appealing energy-generation solution for automotive application. Among the multiple advantages that the new batteries will offer are cutting-edge and environmentally-friendly technology, cost competitiveness, superior performance, safety, and versatility.

"Together, Nissan and NEC's engineers have addressed the key challenges of cost, performance, safety and reliability - we believe that we have a breakthrough technology in the lithium-ion battery product we will produce. Through AESC, this battery will be made available to all automakers, and we expect this could further accelerate the development of future generations of eco-friendly vehicles," explained Carlos Tavares, Executive Vice President of Nissan.

Nissan and NEC Group will invest 490 million yen (approx. USD 4.1 million) in the partnership. AESC is expected to begin operations by the end of April, 2007, and will operate as an independent company. The new company will focus on the development and marketing of advanced lithium-ion batteries, designed to power future generations of electric-powered vehicles. After one year, the partnership will be expanded to include mass production and sales. The new joint venture will become the leading company in mass production of lithium-ion batteries for the global automotive community using pioneering technologies developed by Nissan and NEC Group.

While it was known that these companies were working on Li-ion batteries this must come as a blow to Altair, Valance and A123Systems that the announcement came at this time. These relative small companies are just starting to build up their technologies and production capabilities and to have these massive Japanese companies come in at this time could be devastating to them. A123 has the backing of USABC so it is better off than the other two.

AESC's time frame for production is in line to be used in Nissan's previously announced in-house developed hybrid system. However their batteries will be available to all automotive companies.

General Motors has development contracts to develop batteries for the Saturn Vue Green Line plug-in hybrid SUV and the production model of the Chevrolet Volt with a joint venture between Johnson Controls and Saft and Cobasys, a joint venture between Chevron and Energy Conversion Devices, Cobasys is working in partnership with A123Systems. Two test batteries, one from Cobasys – A123Systems and the other from Johnson Controls – Saft, will be evaluated in prototype Saturn Vue Green Line plug-in hybrids beginning later this year. Johnson Controls-Saft is a combination that produces more automotive batteries than anyone else in the world and is a power to be reckoned with.

Toyota Motors has said that it will use lithium-ion batteries in its third generation hybrid vehicles due out in late 2008 or 2009. Panasonic EV Energy Co. Ltd., a joint venture between Toyota and Matsushita Electric Industrial is developing batteries for Toyota. 

On the other hand this new company will most likely have the ability to mass produce these batteries from the get go thus reducing the cost to what hopefully will be a more affordable price.

Comments

[Beek]

I dont think it would surprise anyone if the Japanese take the lead on n-BEV (nano-lithium BEV). Their whole philosophy is markedly different from American car makers, and European ones too. For the Japanese, innovation means opportunity, and pride in perfecting a new technology for their beloved customers. For the Americans and Europeans, new technology means uncertainty, fear of the unknown, extra risk, and dislocation in business.

GM could easily spinoff an n-BEV operation and manage this breakthrough as a separate entity. But no, they fear the cannibalisation, and they want to first perfect something so ordinary as how to package safe Li-ion batteries, before they make up their minds if the customer wants it or not.

I will not be surprised if the Japanese, followed by the Koreans/Chinese and possibly Indians win the BEV wars hands down, and the rest of the industry just tries to play catch up.

[Roger Bedell]

It takes a lot of commitment to make a superior product - I doubt if the established American car companies have this. Likely, the current top execs made it to the top by selling Excursions and Suburbans in the early 00s - hybrids, plugins, and EVs are just green washing to them. Maybe the new EV companies Tesla et al have a chance with enough backing, and enough brain-power, although pure EVs have their problems as well. Its great to see this move by Nissan-NEC however, I'm still waiting for my Japanese engineered, Chinese manufactured, low cost, 5 seater, 200 mile range, 10 - 15 minute quick charge, 8 hour home slow charge, 150,000 mile battery life, family car.

[Jimmi]

This is good news for the EV market in general. This will drive competition to new heights. Well atleast one would hope so. ALTI and A123 better get off their arses and kick it into high gear. Looks like the gauntlet has been thrown with an attached year of 2009. Can't wait to see those battery specs.

[me]

This is great news. I'd love to see Detroit get their butts kicked and then get put to rest once and for all. Harsh, yes, but they and the oil companies have been fighting more stringent CAFE standards for years. Deserves them right !

[Harvey D.]

Roger:

Your 5-seater dream car seems to be just around the corner. However, it may be Chinese engineered and 100% Chinese built.

It may not be sold in USA/Canada for many years. The Big-3, UAW memebers, Oil Cos, corn farmers, ethanol producers, lobbies and politicians will all find reasons to block and/or delay its import.

China may voluntarily delay the export to satisfy their own growing need and not to overly increase USA's trade deficit.

[iknowall]

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