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Even the big guys can’t deny the future of EVs

Posted on 11. Nov, 2009 by nrossique in Electric Car Stocks

Nissan charges up EV battery production funding

One of the automotive world’s major players has made a huge commitment to electric vehicle production, according to a report by the Nikkei business daily.

Nissan Motor Company has announced its plans to invest 50 billion yen to speed up the production of electric car batteries made by Renault, its French partner. Thirty billion will be spent to construct a new plant in France (with Renault), and will be the home of Renault’s lithium ion batteries. The new plant is expected to be open no later than 2012 and will provide batteries for approximately 60,000 cars. Meanwhile, 20 billion will go directly to supplying the actual batteries, which are to be placed in Renault EVs that are tentatively supposed to be on the French marketplace by 2011.

This unprecedented move comes on the heels of Nissan’s CEO Carlos Ghosn saying that zero-emission vehicles will be a staple of his company’s business in the future – and that the French/Japanese duo was prepared to produce 500,000 electric car batteries each year as soon as market conditions warranted it.

If these 500,000 new electric vehicles sold for a very conservative price of $20,000, we can assume, then, that Nissan plans to recoup this investment in a big way – in upwards of $10 billion.

Why does Nissan have such big expectations? The answer is simple. They understand that the American public (and the rest of the world, for that matter) is clamoring for a vehicle that is cheaper on fuel, less expensive to maintain, and “greener.” The electric vehicle gives them all that in one package.

Nissan and Renault also plan to share some key components on their future vehicles, thereby cutting costs on their joint venture.

As more and more people become aware of the technology already in place (not to mention what is just around the corner), the groundswell of demand for electric vehicles is already being felt. It’s just a matter of time before the whole world knows.

Tags: 50 Billion yen, Carlos Ghosn, Electric Car, Electric Vehicle, Nissan