Nidec intends to invest some 200 billion yen ($1.8 billion) in EV powertrains push, which will result in the manufacturing capacity of millions of electric motors for cars.
The company already produces some 3 billion electric motors annually for all kinds of applications, but those are actually often tiny machines. The traction motors, on the other hand, are a new branch.
The investment will be divided into three plants:
- Dalian, China: from 2021, 100 billion yen ($910 million) investment (up from 55 billion yen planed initially), 3.6 million electric motors annually
- Poland: from fiscal 2021, 50 billion yen ($455 million) investment, 2.4 million electric motors annually
- Mexico: from fiscal 2023, 50 billion yen ($455 million) investment, 2.4 million electric motors annually
In total, those three new facilities will be able to deliver up to 8.4 million electric motors per year. Combined with current production and joint ventures, it would be probably 10 million.
It's expected that by 2030 the demand for EV electric motors will increase to 30 million annually (some vehicles will be equipped with 2, 3 or 4 motors).
Nidec hopes that it will capture up to 35% of the market (from 4% currently)!
The vast experience and high scale are the foundation, but the key element of the Nidec's strategy is to lower the cost of electric powertrains by 30-50% compared to competitors.