Nidec invested 6.5 billion yuan in building a drive motor R&D base in Dalian

It is learned that Nidec Corporation will invest about 100 billion yen (about 6.5 billion yuan) to build a new drive motor R&D base in Dalian, China. The base will focus on motors for pure electric vehicles and is scheduled to be put into operation in 2021.

The number of technical personnel at the R&D base is expected to reach 1,000. In addition to developing drive motors for pure electric vehicles, it will also develop motors for home appliances and other products.

Nidec has planned two major production bases in the Chinese market. It is expected that by the end of 2021, Nidec's domestic three-in-one electric drive assembly production capacity will reach more than 4.6 million (3.6 million in Dalian factory + 1 million in Pinghu factory).

Nidec's move comes as its global rivals are also scrambling to expand their presence in China. Germany's Continental AG plans to set up a research and development center in Tianjin in 2021, while another German supplier, Bosch, has also teamed up with a local company to supply electric vehicle engines.

Concerned that the U.S. may tighten restrictions on Chinese products, Nissan will conduct major operations in both China and the U.S., where it already has auto engine, industrial and appliance engine plants. Nidec Chairman and CEO Shigenobu Nagamori has been a staunch advocate of cross-border expansion, arguing that more globalization should be pursued and bringing supply chains back home would only increase risks.

In addition to establishing a new R&D base, Nidec will also expand the staffing of its two existing R&D bases in China to enhance the technical strength of electric vehicle-related products.