Kyoto-based motor manufacturer Nidec will invest about USD 1.9 billion in an electric vehicle motor factory in Serbia to strengthen its position in Europe.
Nidec is in the final stage of negotiations with local authorities on plans for the factory and an accompanying research center, according to media outlet Nikkei.
The two sides are in talks to build a plant in Novi Sad
Local media reported earlier that Nidec is interested in building a factory in Novi Sad, in the northern part of the Balkan country.
The Japanese company is boosting its investments in the European Union and China to expand in the electric vehicle market.
The Serbian facility will become one of the company’s largest production hubs in Europe
The new plant will reach annual output of 200,000 to 300,000 units by 2023.
Nidec will start producing EV drive motors in France and Poland as well, starting in 2022, but the Serbian facility will become one of the company’s largest production hubs in Europe, the report adds.
The Japanese company is just one of many to start production of electric vehicle components in the EU
The Japanese company is just one of many to start production of electric vehicle components in the EU. The trade bloc aims to become climate neutral by 2050. It limited average fleet-wide emissions for new passenger vehicles at 95 grams per kilometer.
Sales of EVs and plug-in hybrids in the EU increased 62% in the first half of this year from the same period of 2019
Volkswagen and Daimler, driven by the goal, are ramping up production of electric vehicles while Tesla is building a factory in Germany.
The results are evident as sales of EVs and plug-in hybrids increased 62% in the first half of 2020 on the year to 399,000 vehicles, according to data compiled by the European Automobile Manufacturers’ Association.
Major players opening factories in Europe
In order to meet demand for components, major EV battery makers LG Chem and Samsung SDI of South Korea have built factories in Eastern Europe.
Nikkei noted China’s Contemporary Amperex Technology Ltd. (CATL) is constructing a USD 2 billion plant in Erfurt, Germany, that will produce cells.
Japanese materials group Toray Industries will begin operations at a new plant in Hungary by 2022 to produce separators for lithium ion batteries, while Zeon is considering production in Europe as well.