Renault-Nissan Alliance Establishing JV that Targets Battery Recycling

The Renault-Nissan Alliance, the French Atomic Energy Commission and the French Strategic Investment Fund have signed a letter of intent to set-up a joint venture company that would develop and manufacture batteries for electric vehicles.

Renault-Nissan and the French Atomic Energy Commission will reportedly bring technical knowledge and infrastructure support in addition to an equity investment. The French Strategic Investment Fund will contribute 125 million euros (US$187.4 million) to the project.  In order to complete the financing of the project, the European Investment Bank is considering a loan of up to 50 percent of the 280 million euro (US$480 million) debt financing.

The joint venture between Renault, Nissan, CEA and FSI would focus on advanced research, manufacturing and the recycling of electric vehicle batteries. The joint venture plans to produce batteries from mid-2012 at the Renault Flins plant.

The production capacity is targeted at 100,000 batteries a year. The investment value of the first phase of the project is estimated at E600 millions.

The Renault-Nissan Alliance will use its European battery plants in France, Portugal and the U.K. to supply electric vehicles built around Europe and Turkey.

Renault intends to use the batteries produced at Flins primarily for the all-new electric car that will derive from the Zoe Ze concept, which will be also built at the Flins plant.