Renault, Nissan, Mitsubishi to Invest 31 Trillion Won in Electric Vehicle Development... Aim to Launch 35 Models

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The alliance of three companies?Japan's Nissan Motor, Mitsubishi Motors, and France's Renault?announced that they will invest $25.7 billion (approximately 31 trillion KRW) over the next five years in electric vehicle (EV) development and plan to launch 35 EV models by 2030.

According to the Wall Street Journal (WSJ) and others on the 27th (local time), the three companies stated at a joint press conference that they will strengthen cooperation in the electric vehicle sector. They plan to expand battery production plants at key locations in Japan, France, and other countries to produce batteries for 2.4 million EVs by 2030, which is 20 times the current capacity. Additionally, they intend to enhance competitiveness by jointly using the next-generation solid-state batteries (ASSB) being developed by Nissan.

This announcement is the first statement released since Renault and Nissan issued a joint declaration in May 2020. Jean-Dominique Senard, Chairman of Renault, explained that "the alliance experienced an unprecedented crisis due to a lack of trust three years ago," and this decision signifies that the alliance still exists strongly. Renault holds 43.4% of Nissan's voting shares, and Nissan owns 15% of Renault's non-voting shares. Through this shareholding structure, Renault is also involved in the management of Mitsubishi Motors, in which Nissan holds a 34.0% stake.

However, regarding the plan by Nissan, Mitsubishi, and Renault, the WSJ analyzed that the investment scale is relatively small compared to competitors such as Volkswagen, indicating a cautious attitude toward EV demand. Previously, Volkswagen announced it would invest 52 billion euros (approximately 70 trillion KRW) in EV development over the next five years, and General Motors (GM) stated it would invest $35 billion in EVs and autonomous vehicles by 2025.

This content was produced with the assistance of AI translation services.