Renault-Nissan Starts Up Billion-Dollar Venture Fund for Car Technology

  • Renault-Nissan Starts Up Billion-Dollar Venture Fund for Car Technology

Renault-Nissan Starts Up Billion-Dollar Venture Fund for Car Technology

Management of the capital fund will be handled by a new, separate entity known as Alliance Ventures, run by long-time investment banker Francois Dossa, who has spent the last six years with the Alliance.

The fund expects to invest up to $200 million in its first year and key potential areas of investment include vehicle electrification, autonomous systems and artificial intelligence, the statement said.

As the fund grows along with the number of strategic investments, Alliance Ventures will operate as an incubation center for partnerships, automotive entrepreneurs as well as the flawless place for the supergroup to begin creating more partnerships. The fund will also invest in all start-up stages and will incubate both new automotive entrepreneurs and make new partnerships. The new corporate venture fund is part of a push by Renault-Nissan Chief Executive Carlos Ghosn. "This new fund reflects the collaborative spirit and entrepreneurial mind-set at the heart of the Alliance".

Ionic is developing materials for an entirely solid-state battery free of cobalt, the price of which is soaring. The equity acquisition coincides with the execution of a joint-development agreement with the Alliance for the objective of R&D cooperation.

The investment portfolio is a strategic vision of Alliance 2022, which was launched past year by Renault-Nissan-Mitsubishi. Ionic, based in MA, is the developer of a pioneering solid polymer electrolyte that enables improved performance and cost effectiveness of high-energy density batteries for automotive and multiple other applications. Technologies discovered by each partner will be shared through the alliance.

Alliance Ventures will be led by the chief executive of Nissan Brazil, and seeks to create cost-savings for projects and products related to electric vehicles (EVs), autonomous driving and vehicle connectivity. As well as acquiring part of the company, Alliance has agreed a research and development partnership with Ionic - which could help drive innovation in electric cars.

The first deal for the venture capital group has already been put into motion. It is expected to be co-located in Silicon Valley, Paris, Yokohama and Beijing, close to the technology and research centers of the Renault-Nissan-Mitsubishi alliance member companies, as well as to areas with strong innovation ecosystems.

Within the excitement of CES, Renault-Nissan-Mitsubishi announced the creation of a venture capital fund. The first deal will be a strategic investment in the company Ionic Materials; an organization based in the state of MA who is the developer of a pioneering solid polymer electrolyte that enables improved performance and cost-effectiveness of high-energy density batteries for automotive and multiple other applications.