Nissan, NEC to invest in lithium-ion batteries

Japan’s Nissan Motor Co. and NEC Corp. said that they will invest at least US$1.1 billion to make lithium-ion batteries for about 200,000 electric and hybrid cars annually in 2011 or later. The companies planned to ramp up annual capacity gradually to supply 65,000 units in 2011 for use in Nissan’s in-house hybrid car and electric vehicles due in 2010. A NEC spokesman said the venture was considering further investment and capacity expansion. The venture, Automotive Energy Supply Corp. (AESC), has also considered setting up factories in the United States and Europe, in a bid to tap low-interest loans offered from the local governments to produce environmentally friendly vehicles. (December 29, 2008)