China’s CATL to supply car batteries to Nissan and Renault

Top Chinese automotive battery maker CATL will provide lithium-ion batteries to Nissan Motor and Renault, accelerating its push to expand business with global carmakers. CATL, or Contemporary Amperex Technology will produce batteries for Nissan’s Sylphy Zero Emission electric sedan, scheduled to hit the Chinese market in the latter half of the year. This marks the company’s first deal with a Japanese automaker.

The Sylphy one of the 20 electrified vehicles Nissan plans to release in China over the next five years is slated to become Nissan’s first electric vehicle mass-produced there. It is expected to offer a driving range of 338km under the Chinese measurement method.

Electric cars powered with batteries from government-designated manufacturers, which are mostly Chinese producers, will be given priority in receiving subsidies. Nissan decided to procure batteries from CATL as it seeks to balance cost and quality.

Renault, which is part of a three-way alliance with Nissan and Mitsubishi Motors, has also tapped CATL. The French automaker plans to use CATL batteries for the electric version of its Kangoo compact van under development. CATL already supplies such European automakers as BMW and Volkswagen and hopes to leverage the Renault deal to further solidify its foothold in Europe.