Renault Group and Nissan Motor have announced the renewal of their alliance contemplated by a binding framework agreement that will help to strengthen the Japanese automaker’s push for electrification. Nissan will invest as much as $663 million in Renault’s EV unit, Ampere, and the French carmaker’s stakes will be reduced to 15 per cent.

The agreement comes as the automotive industry’s paradigm shift to electric vehicle (EV) production intensifies. The agreements focus on extending the Alliance collaboration in three main areas.

These main areas of attention include high-value-creation operational projects in India, Latin America and Europe; enhanced strategic agility with new initiatives that partners can join; and rebalancing Renault-Nissan cross-shareholdings and reinforced Alliance governance.

Luca de Meo, CEO of Renault Group, said:

These agreements provide us with a solid base to reactivate business operations worldwide in key markets…it confirms the attractiveness of the project to be front runner in Europe, allowing Renault and its Alliance partners to position themselves ahead of the starting grid for the EV and software race in Europe.

This investment opportunity aligns with Nissan’s electrification strategy, creating multiple potential benefits and synergies that complement Nissan’s own goals and initiatives in Europe and other potential markets.

Nissan’s chief executive, Makoto Uchida, claimed that the company faces a “massive challenge in terms of rolling out electric vehicles in the US” after Nissan’s vehicle sales in the first quarter revealed a 36.8 per cent drop in China.

The agreement will allow Nissan to strengthen their EV marketing and strategies in China as well as the US.

Want to keep seeing which stories are sparking the mobility community? Sign up to our MOVEMNT newsletter for weekly updates every Thursday 8am