Renault announced that its Japanese sister company Nissan will produce the batteries for Renault’s future electric vehicles at Renault’s Flins plant near Paris.
“Renault will remain the owner of the land and the building, Nissan will pay rent and Renault will be its main customer,” said a spokesman, quoted by Reuters. The spokesman confirmed reports in the French press and added that Renault will be responsible for the investment required to equip the plant, although he didn’t say how much the carmaker planned to invest.
The investment in the first part of the project had been estimated at 600 million euros ($815 million) when it was first presented in 2009. The batteries that will be produced at the Flins facility will equip Renault’s range of electric cars, including Renault’s new zero-emissions model Zoe.
In July this year, Renault announced that it delayed the start of production of batteries at Flins to 2014, although the initial plan was for mid-2012. According to Renault’s Chief Executive Officer Carlos Ghosn, electric cars are estimated to reach 10 percent of the worldwide car market between now and 2020. Electric cars are a key part of the French carmaker’s strategic plan.