Nissan, to sell its electric battery business to GSR Capital

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On Tuesday,  Nissan Motor Co has agreed to sell its electric battery business to Chinese financing firm GSR Capital for a unrevealed amount. The battery plants in  England and Japan are the businesses to be sold to GSR, the Japanese automaker said in a report.

By acquiring the combined 49 percent minority stake owned by NEC Corp and its subsidiary NEC Energy Devices, Nissan will primary take full control of the company – Automotive Energy Supply Corp –  NEC Corp said it had authorised the sale of its stake.

GSR Capital has agreed to pay Nissan a sum of $1 billion for the deal, according to a person with fundamental knowledge, including the NEC stake.

GSR is also looking to buy a material holding in Chile’s Sociedad Quimica Y Minera (SQM), which has financed in clean technology and electric cars, one of the world’s largest lithium producers, Reuters announced in July.

Currently managing a $5 billion M&A fund, the firm mostly targets foreign industrial and developing technology companies, including electric car batteries and pharmaceuticals businesses.

Beijing is promoting electric vehicles to battle air pollution and help domestic carmakers improve the combustion engine to build global auto brands, making battery and lithium producers winning assets for Chinese firms.