By Norihiko Shirouzu

(Reuters) – Renault According to two sources familiar with the matter, SA (OTC) Motor Co, Nissan (OTC) Motor Co and Mitsubishi Motors Corp intend to triple their joint investment in electric vehicle development (EVs), according to Reuters.

The French-Japanese partnership is looking to strengthen cooperation as established automakers are under pressure from new rivals and a shift toward EVs.

The three are expected to announce on Thursday a plan to invest more than 20 billion euros ($23 billion) over the next five years on EV development, the sources said. According to them, by 2030 the alliance should have 30+ new battery-electric vehicles, supported by five common platforms.

According to two sources with knowledge, this is on top of 10 billion euros that the group already has spent on electrification.

On Sunday, representatives for Nissan (PA:), Renault (PA) and Mitsubishi didn’t immediately respond to inquiries for comment.

The “Alliance to 2030” plan aims to show “intensified cooperation” among the automakers, highlighting a “shared vision on electrification and connected mobility,” one source said. Sources said that the five platforms will cover 90% of EVs developed and launched by the companies between 2030 and 2025. 

This three-firm alliance developed and partially deployed four common EV platform.

One underpins EVs such as Nissan’s upcoming Ariya and Renault’s Megane EV, and another supports affordable no-frills cars by Nissan and its China market partner Dongfeng, as well as for Renault’s Dacia brand. The other two are platforms for micro minis, called “kei cars” in Japan, and light commercial vehicles.

The sources claimed that the alliance aims at deploying a fifth platform to support compact EVs made by Renault before the end of the decade.

According to sources, Nissan already plans to make use of this platform (called CMFB-EV) and standardised parts to power the Nissan Micra compact vehicle. Renault will likely create an EV similar to the Nissan Micra, which is based on the same platform. The Micra EV should be out by the middle of 2020s.

Affordable EVs

According to sources, automakers want compact EVs that are as cheap as similar-sized gasoline-powered vehicles.

Automakers will likely use the same batteries and other components. Sources said that the alliance intends to invest jointly in production capacity in France and Britain as well as China and Japan to create a total 220 gigawatt hour of battery capacity. This is in line with the plans.

The alliance hopes to reduce battery manufacturing costs by standardising and sharing its batteries.

They also said that the alliance will likely share solid-state lithium-ion batteries technology which Nissan has been working on.

The original intention was to have the leaders of Renault and Nissan announce the 2030 plan in Japan last autumn, however, this announcement was delayed due to an increase in COVID-19, according sources. 

A disagreement between Nissan and Renault over the French firm’s proposals for a full-blown merger – tensions that burst into the open with the arrest of former alliance leader Carlos Ghosn in 2018 – corresponded with stalled efforts to collaborate on technology and vehicle development, people with knowledge of the matter have said.

All three automakers have different hybrid technologies, with very few parts or systems that are shared by others. One source stated that the lack of cooperation between the three automakers in developing and sourcing parts has caused concern about their ability to save money.

The decision of alliance leaders to discuss hybrids in the 2030 plan was not clear at this time.

Nissan stated in November that they would invest $18 million over five years to increase vehicle electrification. They plan to launch 23 electrified cars, including hybrid gasoline and electric, before 2030. The company stated that half of Nissan’s vehicles will be electrified in 2030. This includes EVs as well as e-Power hybrids.

Renault has said its Renault brand will be 100% electric in Europe by 2030, but company officials told Reuters the target does not apply to markets outside Europe and the group’s other brands, such as Dacia.

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