Nissan Motor has cancelled the sale of its electric vehicle battery business to a Chinese investment firm, according to a Reuters report.
Nissan originally announced plans to sell its Automotive Energy Supply Corporation (AESC) subsidiary, which has battery plants in Japan, UK and the US, last year and had been in advanced negotiations with China’s GSR Capital for a price thought to be around US$1bn.
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GSR Capital typically buys foreign industrial companies involved in new and advanced technologies, including electric vehicle technology companies such as lithium-ion battery producers, which are particularly relevant to China given the anticipated growth in this market.
The report suggested a lack of forthcoming funds had held back the sale, prompting Nissan to cancel the deal and make other plans.
Nissan originally established EV battery production 10 years ago to meet demand for its Leaf EV but the industry has changed significantly since then with capacity rising sharply in the last few years in anticipation of huge EV demand in China.
It was unclear whether Nissan would look for another buyer for AESC or keep it in house but it was thought to favour outsourcing these parts to ensure future competitiveness.
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