Japanese automaker Mazda Motor Corp plans to invest 1.5 trillion yen ($10.6 billion) in batteries for electric vehicles by 2030 in partnership with Chinese battery maker Envision AESC. informed on Tuesday the resource Nikkei Asian Review.
According to Nikkei sources, Mazda will be working with Envision AESC Group of Kanagawa, Japan, a major car battery maker owned by a Chinese company. Introduceto provide batteries for their electric vehicles, which will be manufactured in factories in Japan. Investing in Envision AESC will allow the company to reduce the cost of purchasing batteries from external suppliers.
Batteries are an important part of an electric vehicle, accounting for around 30% of the cost. Mazda plans to source batteries for its electric vehicles from Envision AESC, as well as Toyota’s Prime Planet Energy & Solutions subsidiary. Nikkei noted that Envision AESC received investment from another Japanese automaker, Nissan Motor.
Mazda is expected to hold a press conference today to discuss electric vehicle production plans and collaboration with Envision AESC.
Automakers around the world are investing heavily to increase production of batteries and electric vehicles in the face of tighter environmental regulations. In August, Toyota Motor Corp announced plans to invest up to 730 billion yen in Japanese and US battery production for all-electric vehicles instead of hybrid vehicles like the Prius. Automaker Honda Motor announced the same month that it would build a new $4.4 million lithium-ion battery plant for electric vehicles in the United States with Korean battery maker LG Energy Solution.