"Japan's Nidec Corporation … and Brazil's Embraer … today announced an agreement to establish a joint venture company, called Nidec Aerospace LLC, to develop Electric Propulsion Systems for the aerospace sector. Nidec Corporation, the world's leading comprehensive motor manufacturer, will be backed by Embraer's more than 50-year history of complementary aerospace experience to design, certify, produce, and commercialize next-generation electric propulsion systems based on well-proven technologies suitable for powering more efficient and greener aircraft models," the statement read.
The joint venture is driven by the growth of the urban air mobility industry, the company added.
The new firm, Nidec Aerospace, will develop and manufacture electric propulsion systems for electric vertical take-off and landing vehicles with headquarters in the city of St. Louis in the US state of Missouri. The production will be centered around both companies' existing factories in Brazil and Mexico, the statement read. Nidec will take a 51% stake in the firm and Embraer 49%.
The launch customer will be Brazilian company Eve Air Mobility, "an independent company well-positioned to be a global leader in the urban air mobility segment," Nidec said.
Japanese newspaper reported that Eve Air Mobility seeks to launch commercial operations of electric flying vehicles using engines produced by Nidec Aerospace in 2026. Nidec will reportedly invest $140 million in engine research and development.
The joint venture deal is expected to be sealed in the second half of 2023, Nidec's statement read.