Nissan in talks with Panasonic and others to sell battery operations

Nissan Motor is in talks with Panasonic Corp and abroad companies including Chinese firms over the possible sale of its controlling stake in a car battery production venture.

Two individuals with understanding of the matter stated on Saturday that the Japanese automaker wishes to sell its 51 percent stake in Automotive Energy Supply Corporation, that makes lithium-ion batteries for electric automobiles. The business is jointly owned by NEC Corp.

The Nikkei daily on Friday reported that Nissan was planning to sell the business because it would be less expensive to buy batteries for its electrical vehicles including its Leaf model from other developers. The newspaper did not state the source of information.

Talk of the sale “is speculation, and is not based on any announcement by us”, Nissan stated in an e-mail. Spokesmen for Panasonic and NEC refused to comment.

Competition to provide batteries for electric automobiles is warming up due to expectations that a growing number of lower emission vehicles will be produced in the coming years.