Embraer and Nidec Corporation, have received regulatory approvals to form a joint venture, Nidec Aerospace LLC will invest USD 77 million to develop EPS for the aviation industry.
Embraer and Nidec Corporation, two leading engineering conglomerates from Japan and Brazil respectively, are celebrating the unconditional approval from all relevant regulatory authorities for the establishment of their joint venture, Nidec Aerospace LLC. This collaborative venture aims to harness their collective expertise to develop Electric Propulsion Systems (EPS) for the aerospace industry. Nidec Aerospace is expected to invest more than USD 77 million in the coming years, with the goal of commencing mass production by 2026. This ambitious investment reflects the commitment to advancing the electrification of aviation and contributing to the growth and sustainability of the aerospace industry.
This partnership, unveiled at the Paris Air Show in June, intends to tap into new opportunities by offering a diverse portfolio of products and services on a global scale, primarily driven by the growth of the Urban Air Mobility (UAM) sector. Morgan Stanley Research estimates that the UAM market could reach a value of USD 1.5 trillion by 2040, making it a substantial and promising market.
“We are thrilled with the unconditional clearance. The next step will be the integration of these two powerful operational and engineering capabilities focused on business excellence. Together, our extraordinary teams will be able to develop advanced solutions to collaborate with the future of sustainable aviation,” said Dimas Tomelin, Senior Vice President of Corporate Strategy, Digital and Innovation, at Embraer.
The joint venture’s first customer for Electric Propulsion Systems will be Eve Air Mobility, an electric Vertical Takeoff and Landing (eVTOL) manufacturer. Eve Air Mobility is strategically positioned to become a global leader in the UAM segment by providing an effective and sustainable mode of urban transportation. Embraer will contribute its expertise, knowledge, and resources related to the controller, while Nidec will offer its technological know-how and resources pertaining to electric motors. Nidec holds a majority stake of 51% in the joint venture, with Embraer owning the remaining 49%.
“This approval marks a significant milestone not only in Nidec Motion & Energy’s joint venture with Embraer but also in our shared vision to advance and electrify the way the world travels,” noted Michael Briggs, Senior Vice President and President of the Motion & Energy Business Unit, Nidec. “Now with official clearance to proceed, the Nidec Aerospace team is poised to bring the expertise, speed, and drive needed to accelerate sustainable aviation on a global scale,” he further added.
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In summary, the approval of the Nidec Aerospace joint venture marks a significant step toward accelerating the development of Electric Propulsion Systems for the aerospace sector, with a focus on the burgeoning Urban Air Mobility market. This partnership leverages the strengths of two prominent engineering companies and positions them at the forefront of sustainable aviation solutions.
