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Keppel acquires stake in electric vehicle battery businesses for US$50m
KEPPEL Corporation has signed an agreement with Envision AESC to invest US$50 million for a minority stake in intelligent lithium-ion battery company Envision AESC Group.
Envision AESC Group recently acquired Automotive Energy Supply Corporation (AESC), a former venture between Nissan Motor Company (Nissan) and the NEC Group. It has also acquired the entire share capital of NEC Energy Devices, a battery electrode manufacturing company owned by NEC Corporation. Envision AESC and Nissan hold about 80 per cent and 20 per cent of the shares of the newly established Japanese holding company, Envision AESC Group, respectively.
Presently, Envision AESC Group has the capacity of 7.5GWh and a workforce of 1,400 employees across Japan, the US and the UK. Envision AESC Group is expanding its production into China and is engaging various global automakers to grow its customer base.
Loh Chin Hua, CEO of Keppel Corporation, said the investment is part of its strategy to expand the Keppel group's energy solutions with cleaner fuel sources and renewables. It will also be a platform that will deepen its insights into the fast-growing electric vehicle market.
Both Keppel and Envision are working to introduce IoT-enabled storage devices that can help smart buildings and smart grids become more energy efficient. Apart from IoT-enabled batteries, Keppel and Envision are also exploring other potential areas of collaboration to create new solutions for smart cities, renewable energy, IoT-enabled townships and power generation.
Keppel Corp shares ended 1.5 per cent higher at S$6.31 on Monday.