Zhenjiang in China is to be the new headquarters and production base for the now Chinese-owned Nissan electric vehicles batteries business, state media has reported.
The new Nissan batteries complex will be set up in the Zhenjiang New District in Jiangsu Province at a cost of around CNY12.5 billion ($1.9bn), according to China’s Xinhua News Agency.
The move comes after Chinese private equity firm GSR Capital Advisors led the acquisition of Nissan’s electric vehicles battery division, with two other domestic companies – Zhejiang Unifull Industrial Fibre and Camel Group.
According to Xinhua, the CNY12.5bn to be spent on the new HQ and production centre is in addition to the $820 million investment to acquire the batteries business.
The Zhenjiang base is expected to produce 20GWh of ternary lithium batteries, which could bring in CNY20bn of taxable sales, with a post-tax profit of CNY4bn, Xinhua added.
Nissan has to date adopted “the most advanced” lithium nickel manganese cobalt oxide (NMC) technology as its technology of choice for electric vehicles, according to Chinese media.