Renault SA and Nissan Motor Co. are taking significant steps in reshaping their alliance and accelerating their transition to electric vehicles (EVs). As part of this effort, Nissan has announced that it will become a major customer of Renault's combustion-engine venture, along with several other partners including Mitsubishi Motors Corp. The collaboration will see Nissan receiving gearboxes and engines for 12 of its plants, as well as half a million parts annually.
This revamp of the alliance comes after years of growing tensions between the companies. The move allows them the flexibility to explore new partnerships and independent ventures. One such venture is Renault's plan to list its electric-vehicle unit, Ampere, with an expected valuation of up to €10 billion ($10.8 billion). Both Nissan and Mitsubishi have confirmed significant investment in the IPO.
Renault CEO Luca de Meo highlighted the significance of this collaboration, stating, "What we are doing now is, from size and impact, much bigger than what we did in the alliance in the last ten years." The focus is on demonstrating that the alliance can create business value, a critical factor in their ongoing partnership.
Additionally, Nissan will work closely with Renault's Ampere unit to develop a battery version of its Micra compact car specifically for the European market. This collaboration is expected to reduce development costs for the model by 50%. Furthermore, Renault and Mitsubishi may potentially license Nissan's solid-state batteries, a promising technology breakthrough for EVs.
In return, Nissan plans to acquire a stake in Renault's battery recycling unit, which already generates approximately €1 billion in annual sales. By doing so, Nissan aims to position itself strategically for upcoming European Union regulations that aim to enhance sustainability in the EV supply chain. Nissan is also keen on utilizing the joint venture for markets outside of Europe.
The alliance partners have been actively working towards rebalancing their alliance. Last month, Renault transferred 28.4% of Nissan shares to a French trust, marking a significant milestone in their 24-year-old partnership. At the same time, Renault CEO Luca de Meo expressed his intentions to soon sell a stake in Nissan, worth approximately €4.3 billion, as part of the company's ambitious EV development plan.
Renault and Nissan have been collaborating on various joint projects, including a recent $600 million investment in India to expand their car lineup, create jobs, and decarbonize production at a manufacturing plant in Chennai. These initiatives are part of the companies' broader efforts to adapt to the evolving automotive landscape and meet the increasing demand for electric mobility.