Japanese electric motor maker Nidec said Sunday that it will set up a joint venture in the United States with Brazilian regional jet manufacturer Embraer in order to tap into the growing demand for electric flying vehicle components.
Nidec will take a 51% stake in Nidec Aerospace and develop electric propulsion systems for the aerospace sector, with the remainder to be owned by the Brazilian partner.
The companies did not disclose the amount of capital required, but they did say the new entity will establish a base in St. Louis, Missouri, as early as September.
Nidec Aerospace will initially manufacture propulsion systems for electric vertical take-off landing, or eVTOL, vehicles and aim to provide the systems to other aircraft in the future, Nidec said in a press release.
Like drones, eVTOL vehicles use battery power to take off and land vertically, usually with multiple motors and rotors.
Demand for electric flying vehicles is set to surge as the aircraft industry is stepping up efforts to cut greenhouse gas emissions. The global flying car market is expected to reach ¥60.8 billion ($429 million) in 2025 and soar to about ¥185 trillion by 2050, according to Yano Research Institute.
The Japanese motor maker, which is also extending its business to electric cars, will provide its technology for high-output motors, while Embraer is in charge of systems control technology.
The venture will initially supply products to Embraer's flying car subsidiary Eve Air Mobility.