Nissan is selling its battery business to GSR for $1B
Written By: Katherine Demetre
August 9, 2017
Nissan Motor Co recently announced that they will be selling its battery business to Chinese private equity firm GSR Capital for about $1 billion.
According to Nissan, the deal should cover Nissan’s battery subsidiary Automotive Energy Supply Corp as well as manufacturing operations in Japan, the U.S. and U.K. Nissan also revealed that the assets to be sold to GSR would also include part of Nissan’s Japanese battery development and engineering operations.
GSR Chairman Sonny Wu in an interview in Hong Kong, stated:
The battery business alone will not make money, you have to have scale, you have to have the supply chain. It’s a bloody, cutthroat game. The auto OEMs will lock you in for five years.
Per the company, the sale ended the long search for a buyer for the battery unit. GSR stated that the business would allow their company to take advantage of global automakers’ pursuit of sales in China.