Nissan announces sale of its battery-manufacturing unit to Envision

Nissan announces sale of its battery-manufacturing unit to Envision

Japanese automaker Nissan has revealed in a recent announcement that it is selling its battery-manufacturing unit Automotive Energy Supply Corporation (AESC) to sustainable energy operator Envision Group (Envision).

AESC is Nissan’s unit which manufactures lithium-ion battery cells for the electric vehicles produced by the automaker. Nissan has been trying to sell the unit for the last more than two years.

Prior to the sale of the AESC unit to Envision, Nissan was reportedly in talks with Panasonic in 2017. However, since those talks did not materialize, the automaker later confirmed that it has reached a deal with Chinese private investment fund GSR Capital. But, that deal also fell through a few weeks back, because GSR Capital failed to put together $1 billion to acquire AESC.

Finally, Nissan has now confirmed that Envision is acquiring AESC as well as Nissan’s battery development and production engineering operations located at Oppama, Zama, and Atsugi in Japan. In addition, Envision is also acquiring Nissan’s battery manufacturing operations owned by Nissan North America Inc. in Smyrna, Tennessee; and the battery manufacturing operations owned by Nissan Motor Manufacturing (UK) Ltd. in Sunderland, England.

In announcing that Nissan has secured “a definitive agreement” with Envision for the sale of its battery business, Nissan’s Chief Competitive Officer Yasuhiro Yamauchi said: “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.”