Nidec receive Mitsubishi Heavy Industries device Tool, will give whole Electric Vehicle Solutions

According to the Nikkei Shimbun, a Japanese news agency, electric motor maker Nidec will soon acquire Mitsubishi Heavy Industries device tool business. Nidec will own Mitsubishi Heavy Industries device tools at a price of approximately 30 billion yen (approximately 1.8 billion yuan).

Assets and development rights. The acquisition will enable Nidec to take over the development of automotive gears and become a complete traction solution provider for electric vehicles.

Nidec previously declared that it intends to become the world’s leading producer of electric vehicle motors. To this end, Nidec made special investments to expand production and buy the necessary assets. Nidec will invest approximately US$10 billion by 2025.

The Mitsubishi Heavy Industries device tool manufactures industrial equipment used to make automobile gears, not the gears themselves. Mitsubishi Heavy Industries has a 60% market share of similar equipment in Japan.

This acquisition will not only provide Nidec with experience in gear and gear production but also provide experience in the production of basic industrial equipment in this market. According to sources, Nidec has already received orders. By 2025, Nidec will produce 2.5 million electric car motors.

(Via)