Nidec builds new R&D base for electric vehicle motors
According to foreign media reports, Nidec, the world’s leading producer and supplier of electric motors, will build new research and development facilities for electric vehicle drive motors in China in order to respond to the risks brought by the tensions between China and the United States and absorb local demand in China.
Nidec has invested about 100 billion yen (about 6.5 billion yuan) to build a factory in Dalian, China, and the research and development base will be located in the factory. The base will be put into operation in 2021. In addition to the research and development of drive motors for pure electric vehicles, it will also develop motors for home appliances.
The new R&D base is expected to employ 1,000 employees, which is equivalent to the company’s medium-sized R&D center in Shiga Prefecture, Japan. About 400 employees will be responsible for the development of electric vehicle motors. Densan also plans to increase the number of employees in two other existing factories in China, and increase the number of engineers specializing in electric vehicles from the current 100 to 650 within a few years.
Densan’s move comes at a time when its global competitors are also vying to expand their business in China. Continental plans to set up a research and development center in Tianjin in 2021, and another German supplier, Bosch, also cooperates with a local company to supply electric vehicle engines.
Fearing that the United States may tighten restrictions on Chinese products, Nissan will carry out its main business in China and the United States. The company has established automobile engine, industrial and home appliance engine plants in the United States. Shigenobu Nagamori, Chairman and CEO of Densan, has always been a firm advocate of cross-border expansion, and believes that more globalization and bringing the supply chain back home will only increase risks.