Alliance 2022 invests $200 million in opening tech innovation partnerships
Renault-Nissan-Mitsubishi, the world’s leading automotive alliance, has invested up to $1 billion to fund its mobility innovations over the next five years. The company’s investment to electrification project is just in time for the upheaval of the automotive industry.
In its first year, the automotive alliance expects to invest up to $200 million as a start-up and to open innovation partnerships with technology entrepreneurs. The fund, called the Alliance Ventures, will be focused on new mobility, including vehicle electrification, autonomous systems, connectivity, and artificial intelligence (AI) technology.
With further annual investments, Alliance Ventures is set to become the largest corporate venture capital fund in the automotive industry over the period of Alliance 2022, the strategic midterm plan launched last year by Renault-Nissan-Mitsubishi.
Our open innovation approach will allow us to invest and collaborate with start-up companies and technology entrepreneurs, who will benefit from the global scale of the Alliance. This new fund reflects the collaborative spirit and entrepreneurial mind-set at the heart of the Alliance,” said Carlos Ghosn, chairman and chief executive officer of Renault-Nissan-Mitsubishi Alliance.
The Alliance Ventures also offers potential partners access to the global scale and scope of Renault-Nissan-Mitsubishi, which sold more than 10 million vehicles in 2017 through 10 separate brands with a presence in all major automotive markets.
The company will have its first deal with Ionic Materials, a US-based company that develops a solid-state cobalt-free battery materials which can be used in electric vehicles. After its strategic plan, the Alliance will launch 12 pure electric models, utilizing common EV platforms and components, while 40 vehicles with autonomous drive technology, and the developing robo-vehicle ride-hailing services will be brought to market.
As part of the Alliance 2022 strategic plan, Renault-Nissan-Mitsubishi is forecasting that the combined revenues of its member companies will reach $240 billion and that annual unit sales will exceed 14 million by the end of 2022.