NEC Corp. might pull out of its lithium-ion battery business for electric vehicles by selling its battery electrode subsidiary to a Chinese investment fund, sources close to the matter said Thursday.
The electronics giant is apparently planning to sell NEC Energy Device to Chinese group GSR for roughly ¥15 billion ($135 million) as it does not expect future demand to grow, the source said. Nissan Motor Co. has been practically the only taker for its battery electrodes, the source said.
Nissan subsidiary Automotive Energy Supply Corp. produces lithium-ion batteries using NEC Energy Device's electrodes. Nissan is already negotiating with GSR over the sale of its own battery business, while NEC is considering selling its 49 percent stake in Automotive Energy Supply after agreements are reached between Nissan and the Chinese fund.
The lithium-ion batteries are used in EVs and plug-in hybrids.