Nissan Postpones Sale of Battery Biz to Chinese Fund

July 2, 2018

Tokyo- Nissan Motor Co. said on Monday that it has postponed the planned sale of its development and production operations for lithium-ion batteries for electric vehicles to Chinese private equity firm GSR Capital.

The decision was made due to GSR's lack of funds for the acquisition. Nissan will discuss what to do, including the possibility of seeking an alternative buyer.

Based on the deal, Nissan planned to sell its battery business in the United States and Britain, and its equity stake in Automotive Energy Supply Corp., a joint venture with Japanese electronics maker NEC Corp., to the Chinese fund.

NEC was also slated to sell its stake in Automotive Energy Supply, based in Zama, Kanagawa Prefecture, eastern Japan, to GSR through Nissan.

The deadline for the business transfer was last Friday.

The Japanese automaker intends to focus on the development and production of electric vehicles, expected to become popular worldwide, while switching battery procurement to external sources. Jiji Press