Nidec Announces Investment in Eve Air Mobility, a Manufacturer of Electric Vertical Take-off and Landing (eVTOL) Aircraft, for Strategic Partnership Through Nidec’s Subsidiary
July 01 2024 - 6:00AM
Business Wire
Nidec (TOKYO:6594; OTC US:NJDCY) announces that it will make a
minority equity investment of USD 20M in Eve Air Mobility (“Eve”),
a manufacturer of electric vertical take-off and landing (eVTOL)
aircraft and launch partner for Nidec Aerospace’s propulsion
system, through Nidec’s subsidiary, Nidec Motor Corporation
(“NMC”), on July 2, 2024.(EST)
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eVTOL charger (image) (Graphic: Business
Wire)
Company Profile
(1)
Registration name
Eve Holding, Inc.
(2)
Listing
New York Stock Exchange
(3)
Headquarters
Melbourne, Florida
(4)
Foundation
2020
(5)
Business manager
CEO Johann Bordais
CFO Eduardo Couto
(6)
Business content
Manufacturer of electric vertical
take-off and landing (eVTOL) aircraft
(7)
Employees
800 people
(8)
Amount of equity investment
USD 20M
(9)
Investment ratio
1.71%
1. Background
In June 2023, Nidec established Nidec Aerospace LLC (“Nidec
Aerospace”), a joint venture with leading aircraft manufacturer
Embraer, for the development and manufacturing of a globally
competitive electric propulsion system for the aviation industry.
This includes the Advanced Air Mobility (AAM) industry, which
continues to attract worldwide attention as emerging players
develop technologies to solve challenges in electrifying urban
transit. In its first stage, Nidec Aerospace will provide an
electric propulsion system to Eve, a leading eVTOL manufacturing
player in the AAM space, and will later supply to other players and
other non-eVTOL AAM applications.
Eve was launched as Embraer's eVTOL development project in 2017,
then spun off into a separate company in 2020 and listed on the New
York Stock Exchange in 2022. Following this investment, Embraer
will still own over 80% of Eve's shares. Backed by the full support
and certification expertise from Embraer, Eve is steadily
progressing with aircraft development, with flight tests planned by
the end of 2024, and type certification and start of production
slated for 2026. Eve is currently raising funds and strengthening
its relationships with strategic suppliers ahead of type
certification, which is considered the most difficult hurdle for
eVTOL commercialization.
2. Purpose of this investment
Nidec envisions growing beyond supplying electric propulsion
systems for eVTOL and into a wider range of aviation-related
markets, including large industrial unmanned drones,
next-generation hybrid aircraft, and next-generation electric
aircraft. The company aims to leverage its relationship with
leading aircraft manufacturer Embraer to establish itself as an
aviation technology leader with Nidec Group’s small, lightweight,
and highly efficient motor technology.
3. Further business opportunity
This investment also furthers Nidec’s plans to enter the
infrastructure space in the aviation market to supply products such
as chargers for electrified aircraft. Nidec ASI Co. Ltd., a member
of the Nidec Group, currently manufactures EV chargers that
integrate ultra-fast charging technology with energy management
systems (EMS) and energy storage systems (ESS) to provide safe,
reliable, and cost-effective power across the globe. Nidec aims to
use this same technology and product offering to grow in the eVTOL
and unmanned aerial vehicle infrastructure markets, where demand
for rapid, large-capacity charging is critical. Nidec is highly
rated by Eve for its various products, and will be featured in
Eve’s eVTOL ground maintenance manuals as a recommended charger
vendor. This will enable Nidec to navigate the high barrier to
entry in the eVTOL infrastructure business because aircraft fleet
operators prioritize safety when making purchasing decisions; they
are therefore highly motivated to use the related products that are
recommended by their aircraft manufacturer.
Comments Vincent Braley, CEO of Nidec Aerospace
“We view this investment in Eve as a confirmation of our
confidence in Nidec’s aerospace strategy and an extension of our
strategic partnership with Embraer. The global demand for
electrified urban air mobility is expected to ramp up over the next
few years, and Nidec is well-equipped to develop technology and
make investments into the value chain that supports the cleaner,
quieter, and more efficient travel of the future.”
Comments Johann Bordais, CEO of Eve Air Mobility
“Our future eVTOL customers are in good hands with Nidec from
take-off to touch-down. Sustainability and safety are our guiding
principles at Eve, which is why we selected Nidec electric
propulsion system to power our eVTOL aircraft, and why we encourage
fleet operators to use Nidec electric chargers to quickly and
safely charge them”.
4. Effect on Financial Performance for the Current and Next
Fiscal Year
The transaction is expected to have no significant impact on the
Company’s consolidated financial performance for this fiscal year
ending March 31, 2025. If necessary, the Company will make
additional disclosure on a timely basis in accordance with the
rules of the Tokyo Stock Exchange upon determination of further
details.
Cautionary Statement Concerning Forward-Looking
Information
This press release contains forward-looking statements regarding
the intent, belief, strategy, plans or expectations of the Nidec
Group or other parties. Such forward-looking statements are not
guarantees of future performance or events and involve risks and
uncertainties. Actual results may differ materially from those
described in such forward-looking statements as a result of various
factors, including, but not limited to, the risks to successfully
integrating the acquired business with the Nidec Group, the
anticipated benefits of the planned transaction not being realized,
changes in general economic conditions, shifts in technology or
user preferences for particular technologies, whether and when
required regulatory approvals are obtained, other risks relating to
the successful consummation of the planned transaction, and changes
in business and regulatory environments. The Nidec Group does not
undertake any obligation to update the forward-looking statements
contained herein or the reasons why actual results could differ
from those projected in the forward-looking statements except as
may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240701377099/en/
Teruaki Urago General Manager Investor Relations +81-75-935-6140
ir@nidec.com