TOKYO (Reuters) – Japan’s Nissan ( OTC: ) Motor Co said on Wednesday it had agreed to buy all of the ordinary shares of Vehicle Energy Japan Inc, owned by the lithium-ion battery maker’s largest shareholder.
Nissan added that after acquiring shares owned by Innovation Network Corporation of Japan (INCJ), a state-backed fund, Vehicle Energy Japan will become its consolidated subsidiary, in which it will hold shares alongside existing shareholders Maxell Ltd and Hitachi ( OTC:) Astemo Ltd.
Nissan did not disclose any financial details of the deal.
Vehicle Energy Japan designs, manufactures and markets lithium-ion batteries for hybrid vehicles.
“The investment will enable Nissan to secure a stable battery supplier and contribute to the development of the next generation of batteries with a competitive advantage in terms of both performance and cost,” Nissan said in a statement.
A stable supply of battery materials is one of the many challenges facing automakers around the world as tighter environmental regulations accelerate the production and sale of cleaner electrified vehicles.
Nissan rival Honda Motor Co recently said it has formed a partnership with trading company Hanwa Co to ensure steady supplies of base metals used in batteries for electrified vehicles.