Nissan cancels sale of its Battery manufacturing business to GSR Capital

Since launching the LEAF, Nissan's battery packs came from its subsidiary Automotive Energy Supply Corporation (AESC). In August 2017, Nissan announced it would sell that subsidiary to GSR Capital. On July 1, 2018, Nissan announced it was canceling the sale. GSR Capital, a Chinese investment company, was unable to raise the funds by the June 29 deadline. Clearly the batteries made by AESC were not desirable enough to warrant an investment. According to Reuters, Nissan sought to sell its battery business as part of a plan to get lower-cost batteries from other manufacturers, such as LG Chem who supplies sister company Renault. Nissan has talked with other battery manufacturers about purchasing the AESC subsidiary. Panasonic is quoted by Reuters saying they're not interested in buying the manufacturing equipment used by other makers, and that Nissan's formulation is not all that interesting.