Envision AESC: Nissan’s Growing Demand for Electric Car Batteries Prompts Establishment of New Factories

Envision AESC is a lithium-ion battery manufacturer established by three Japanese companies Nissan Motor, NEC and NEC Tokin in 2007 under the name AESC (Automotive Energy Supply Corporation). It has been a subsidiary of China’s Envision Group since 2019 when the Chinese company acquired an 80% stake in AESC. However, even now, the headquarters is in Japan and Nissan has a 20% stake in the joint venture.

Envision AESC plans to build a new plant as Nissan increases production of electric vehicles. In July 2021, plans were revealed that Envision AESC will build a gigafactory near its Sunderland plant in the UK. It will supply batteries to a new-generation crossover EV that Nissan will produce in the UK. The EV will be designed as a global car and will be exported to the European market. Meanwhile, there are plans to build a new factory in Douai, France, in partnership with Renault. The annual production capacity is planned to reach 9 GWh by 2024. It will supply batteries to Renault’s R5 among other models. Both plants will be equipped with Envision Group’s energy management system EnOS.

Envision AESC: Company Overview and Timeline

Overview

Company name:	Envision AESC Group
URL:	www.envision-group.com/cn/aesc.html
Location:	Zama, Kanagawa prefecture
Established:	April 2019
President:	Matsumoto Shoichi
Capital:	99 million JPY (Envision AESC Japan)
Ownership:	Envision Group 80%, Nissan Motor 20%
Business scope:	Batteries for automobiles and general purpose, electrodes, energy management solutions for commercial buildings, factories, power grids, etc.
Employees:	Approx. 2,500 (incl. overseas operations)
Facilities:	R&D center in Shanghai, China and manufacturing bases at several locations (see table below)
Customers:	Renault, Nissan, Mitsubishi, etc. - In the Chinese market, Nissan, which is Envision’s main customer, mainly uses CATL batteries, and the automaker has decided to procure next-generation batteries for e-POWER from Sunwoda Electronic. In order to expand market share, Envision will have to expand its clientele.

Timeline

・In April 2007, AESC (Automotive Energy Supply Corporation) was established by Nissan, NEC, and NEC Tokin. ・November 2010: Mass production of FUGA hybrid batteries started. ・October 2012: The Tennessee factory in the United States started operation. ・December 2012: The Sunderland plant in the United Kingdom started operation. ・March 2018: Obtained IATF 16949: 2016 certification in March 2018. ・August 2018: Envision Group started negotiations to acquire AESC. ・April 2019: Established Envision AESC in April 2019. ・April 2020: Merged with Envision AESC Energy Devises. ・April 2021: Joined the Battery Association for Supply Chain (BASC). (Created using Envision AESC’s PR materials and various media sources)

In China, a new factory is under construction in Ordos, Inner Mongolia Autonomous Region, in addition to the Wuxi Factory in Jiangsu province that has already been put into operation. The maximum annual production capacity of lithium-ion batteries in China is 34 GWh. Envision AESC is expanding its supply system in anticipation of increasing battery demand in China. Apparently, the Tennessee Plant in the United States is also considering expanding capacity.

Envision AESC is aiming to expand external sales to companies other than Renault, Nissan and Mitsubishi, building on its safety record of zero battery-related accidents. In the Chinese market, Nissan, which is Envision’s main customer, mainly uses CATL’s batteries, and the automaker has decided to procure next-generation batteries for e-POWER technology from Sunwoda Electronic. For this reason, in order to increase market share, Envision AESC must increase production capacity and attract new customers.