Nissan Motor Company, NEC Corporation and NEC TOKIN Corporation are to establish a joint-venture company – Automotive Energy Supply Corporation – to focus on lithium-ion battery business for the automotive market.

Nissan and NEC Group will invest $ 4.1m in the partnership. AESC is expected to begin operations by the end of April 2007, and will operate as an independent company. The new company will focus on the development, production, and marketing of advanced lithium-ion batteries, designed to power future generations of electric-powered vehicles. After one year, the partnership will be expanded to include mass production and sales.

‘As a “Sincere Eco-Innovator”, Nissan continues to develop forward-looking green technologies that contribute to sustainable mobility. Nissan will introduce our own original hybrid vehicle by 2010, followed by our next generation electric vehicle in the early part of the next decade,” said Carlos Tavares, Executive Vice President of Nissan.

‘Together, Nissan and NEC’s engineers have addressed the key challenges of cost, performance, safety and reliability – we believe that we have a breakthrough technology in the lithium-ion battery product we will produce. Through AESC, this battery will be made available to all automakers, and we expect this could further accelerate the development of future generations of eco-friendly vehicles,’ added Tavares.