Nissan and NEC join forces to launch a mass production of lithium-ion batteries

The car manufacturer Nissan and NEC Industrial (computing and telecommunications) will work together to launch a new chain of production of lithium-ion batteries for electric cars or hybrids that will start in spring 2009. As the race to produce environmentally friendly cars heats up, Nissan Motor Co. and technology giant NEC Corp. begin mass-producing lithium-ion batteries, a key technology needed for electric cars.

The total investment is 12 billion yen per year over three years (making a total of 225 million euros in 3 years) allocated to a "joint venture" Automotive Energy Supply Corp.. A new plant will be built in Kanagawa prefecture (suburb of Tokyo) with an annual production capacity equivalent to 60,000 vehicles and 120,000 electric hybrids.

For a similar size, lithium-ion batteries have a capacity electric twice the nickel batteries currently used in electric vehicles (150 Wh / kg against 80 Wh / kg). They also have a longer life span. The use of such batteries will therefore reduce the weight of a car from 200 to 300 kg and reduce maintenance operations. Nissan hopes in this way make up the image of ecological automobile manufacturer of its main competitors, Toyota and Honda. The company also plans to supply batteries to its French partner Renault to penetrate the U.S. market from 2010.

The brake the spread of lithium-ion batteries was security. Nissan and NEC have jointly developed cathode manganese, inexpensive material, thus reducing the price of the battery, while reducing the risk of ignition. A factory producing electrodes on the other hand will be installed by NEC in Kanagawa, in order to achieve mass production of lithium-ion batteries so that the cost thereof is half compared to accumulators based nickel.

If the Nissan-NEC batteries are a success, they might help Nissan in the battle to define the next generation of green cars. Toyota has a hit with its Prius gasoline-electric hybrid. And Honda Motor Co., which also produces hybrids, is set to roll out a hydrogen-powered fuel-cell vehicle in the U.S. this summer.

Nissan's joint venture called Automotive Energy Supply Corp. plans to make advanced lithium-ion batteries for electric vehicles, hybrids and fuel cells — all technologies that have been lauded for their abilities to reduce pollution as well as global warming gases.

"Nissan firmly believes the ultimate solution for sustainable mobility lies in zero-emission vehicles," Carlos Tavares, Nissan Motor Co.'s executive vice-president, said at a Tokyo hotel.

A plant for the batteries, set to be running by 2009, will have annual production capacity of 65,000 and starting capacity of 13,000, Nissan said. The investment will cover three years, it said.

Sources:
http://www.nni.nikkei.co.jp/AC/TNKS/Search/Nni20080515D15JSN02.htm
http://www.cbc.ca
http://online.wsj.com

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