Nidec realigns battery supply strategy to match growth in North American, European Battery Energy Storage System Markets
- Nidec’s strategic realignment of its battery supply chain supports its Battery Energy Storage System (BESS) growth
- Expanded and diversified battery supply chain will allow Nidec to deliver key components to BESS customers without delay
- This complements several strategic moves in recent years to bolster Nidec’s BESS and battery strategy, including a May 2024 agreement with AESC to supply LFP batteries and factory investment in Saint-Etienne, France
- Nidec has also acquired 100% of Nidec Energy AS (“NEAS”)
- Acquiring full ownership of NEAS, including all intellectual property developed by the joint venture, will strengthen Nidec’s supply chain resiliency
[July 22, 2025] – Nidec Corporation (“Nidec”), a global leader in electric motor technology, has announced the strategic realignment of its battery supply manufacturing and sourcing to support BESS growth in the North American and European markets.
Global demand for BESS has surpassed Nidec’s existing capacity, requiring further investment and external partnerships to meet growing customer needs. As part of its commitment to continue providing value at every point of the renewable energy supply chain, Nidec recently announced a battery supply agreement with AESC and the construction of a new BESS assembly plant in Saint Etienne, France.
“Nidec has maintained BESS market leadership because of our ability to look at the bigger picture,” comments Dominique Llonch, Energy Platform Leader and President of Nidec Conversion. “This is a continual process, which is exactly why we are celebrating the strategic moves we have already undertaken without losing sight of what we need to do in the future to match the speed of global electrification and decarbonization. This includes further investing into our existing manufacturing capabilities, strengthening our relationships with current battery supplier partners, and seeking out new strategic battery sources.”
Today Nidec is investing in several parts of the BESS value chain with assembly capabilities in its Saint Etienne, France facility and battery pack and DC block design, certification, production capabilities out of its Qingdao, China facility.
Demand for BESS in Europe and Asia is closely followed by growing demand in the United States, where Nidec’s strategic investments to bolster domestic capabilities have quickly positioned the group as a key North American supplier. The products designed, engineered, manufactured, and tested at Nidec’s Brooklyn Heights, Ohio facility support new energy initiatives throughout the United States, including an EPC contract for a 75 MW BESS project with Gore Street Energy Storage Fund PLC to strengthen Texas’ energy grid.
Nidec’s long-term vision and flexibility allow the company to successfully navigate market shifts and supply chain challenges, including the recent changes to Nidec’s joint venture with energy solutions provider T1 Energy, Inc. (“T1”), Nidec Energy A.S. (“NEAS”). T1, known as Freyr Battery at the time of NEAS’ establishment, announced a renewed focus on growth in the U.S. renewables space in November with its acquisition of Trina Solar, as well as its termination of its technology license contract with 24M. Nidec acquired 100% of NEAS on July 2, including all intellectual property developed by the joint venture, aiming to better serve its customers through integration of NEAS assets into its current offering.
Changes to the structure or management of NEAS are not expected to impact Nidec’s supply of batteries.
About Nidec Corporation
Nidec Corporation is the world’s leading electric motor manufacturer with 2024 revenues of over $17B USD. Founded in 1973 and headquartered in Kyoto, Japan, Nidec is a global company comprised of over 300 group companies and 100,000 employees with operations in more than 40 countries. A pioneer in electrification, Nidec is integral as a world-class global technology provider, localized manufacturer, and development partner in industries ranging from information technology, automotive, appliance, commercial, and industrial machinery. Nidec enables positive global change through innovative problem-solving.
For more information, visit Nidec’s website at www.nidec.com.
About Nidec Motion & Energy
Nidec Motion & Energy, a Business Unit of Nidec Corporation, is a trusted development partner in multiple high-growth spaces including industrial automation, vehicle electrification and electrical infrastructure, providing world-class technology, support, and localized manufacturing to support industry leaders across the globe. With headquarters in St. Louis, Missouri, it employs over 13,000 individuals around the world in more than 50 countries.
About Nidec Conversion
As part of the Nidec Motion & Energy Business Unit, Nidec Conversion powers sustainable energy solutions. Headquartered in Milan, Italy, with operations in 10 countries with over 2,000 employees, the Nidec Conversion business segment enables the clean energy transition worldwide through innovation and expertise in energy storage and conversion systems, power quality, EV charging and hydrogen.
For more information, visit Nidec’s website at www.nidec-conversion.com.