Japanese automaker Mitsubishi Motors (7211.T) will invest up to 200 million euros ($214 million) in the new electric vehicle unit of French counterpart Renault (RENA.PA), Mitsubishi said on Tuesday.
Renault Chairman Jean-Dominique Senard, speaking on the sidelines of an event in Paris, said he welcomed Mitsubishi's investment and had always been confident the company would take part in Ampere.
Mitsubishi said in a statement it seeks to improve its EV development technology and expand its lineup of battery-powered vehicles with the investment in the Renault EV unit, named Ampere.
"As a first step of this collaboration, Ampere will supply an EV on an OEM (original equipment manufacturer) basis in the European market," the statement said.
Renault's Senard said he intends to talk in more detail with Mitsubishi during an upcoming trip to Japan.
The decision to invest in Ampere comes after Mitsubishi's partners, Renault and Nissan Motor (7201.T), finalised a restructured alliance in July.
Nissan has already committed to invest up to 600 million euros ($640.98 million) in the unit, consistent with it being a strategic investor and securing a board seat on the new company.
Renault is looking to list the Ampere business as a separate entity on the stock market next year.
Shortly before the announcement, the Nikkei newspaper reported Mitsubishi's investment into Ampere was expected to be about 20 billion yen ($133.85 million).
Like other Japanese automakers, Mitsubishi has struggled in China, the world's biggest car market, where it has faced fierce competition from local rivals that have aggressively won market share with battery-powered vehicles.
($1 = 0.9361 euros)
($1 = 149.4200 yen)
