China-based energy company Envision has announced that it will acquire a controlling stake in Automotive Energy Supply Corporation (AESC), the electric battery operations and production facilities of Nissan.
Nissan will retain a minority equity stake in the post-transaction company. With this strategic acquisition and collaboration, Envision says the newly formed company aims to further drive the development of battery storage technology and the energy Internet of Things (IoT).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Envision intends to upgrade AESC's existing production facilities in Japan, UK, and the US to enable the production of higher density, long-range electric batteries. Envision also intends to open new production facilities in Wuxi, China, enabling AESC to serve the fast-growing Chinese market for electric vehicle batteries and stationary lithium-ion batteries. This, it says, will enable AESC to continuously reduce the cost of lithium-ion batteries and provide a unique presence in all major automotive markets globally, differentiating itself from its key competitors.
Lei Zhang, Envision's Founder and CEO, said: "AESC's lithium-ion batteries are among the most advanced, safe, and reliable in the industry. Their ability to power more than 340,000 Nissan electric vehicles without a single critical incident demonstrates AESC's excellence in technology, design, thermal management, and energy management. As a company inspired by technological innovation, we are delighted to work with Nissan and the AESC team to drive further evolution of this technology and the battery sector."
Lei Zhang added: "From an energy perspective, electric vehicles are mobile intelligent power stations, and the growing number of electric vehicles will have a huge impact on the electricity grid. At the same time, customer anxiety related to the range of electric batteries and charge time is limiting the development of the sector. Envison's smart IoT technology will make both the batteries and the charging process more intelligent. This will enable electric vehicles to be integrated into an energy eco-system, and facilitate the intelligent, dynamic balancing of energy usage and generation in a world powered by fragmented renewable energy systems."
Yasuhiro Yamauchi, Nissan's Chief Competitive Officer, said: "We are pleased to have secured a definitive agreement with Envision, a leading global company in the field of sustainable energy and IoT technology. The transaction will enable Nissan to concentrate on developing and producing market-leading electric vehicles – in line with the goals set in our midterm plan Nissan M.O.V.E. to 2022. We are confident that Envision will be a strong, long-term owner of the new company and that it will further grow as a battery company with increased competitiveness."
AESC's lithium-ion batteries already power more than 340,000 Nissan LEAF vehicles, the best-selling electric vehicle in the world, with over 7 billion kilometers driven without a single critical incident since its introduction in 2010.
