Daimler, Renault-Nissan face challenges over who can build a better battery for EVs

Daimler AG and Renault-Nissan last week announced a strategic alliance where both will cooperate on building electric-vehicles. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% stake in Renault and a 3.1% stake in Nissan.

Daimler CEO Dieter Zetsche says that the Stuttgart automaker will become the leading manufacturer for electric-car batteries – the only problem is, the company’s new business partner CEO Carlos Ghosn has the same idea.

Both have promised to produce the best battery power pack as they kick off plans to jointly produce electric-cars.

“Daimler has been a company that has traditionally been reluctant to give up its own technology path,” said Anil Valsan, the London-based director of automotive research at Frost & Sullivan. “While Daimler”s battery may have a technical edge, Renault-Nissan”s solution may end up being more cost competitive.”

– By: Kap Shah

Source: Bloomberg