PARIS — Renault and alliance companion Nissan are in talks to collaborate extra and enhance the financial savings they will derive from utilizing the identical battery know-how, Renault CEO Luca de Meo mentioned on Tuesday.

Batteries are one of many costliest elements of creating electrical automobiles, at a time when auto teams are racing to drag forward on this phase.

For Renault and Nissan, it has additionally lengthy been one of many weaker factors of a partnership stretching again over 20 years, with every sourcing batteries in numerous methods, together with from South Korea’s LG for the French automaker.

“If we handle to give you a really synergetic strategy on batteries, the alliance will in all probability be one of many first to cross the brink of 1,000,000 automobiles bought on the identical battery module,” de Meo instructed a Monetary Instances automotive convention.

Collaborating on battery know-how will probably be a giant take a look at of the way forward for the Renault-Nissan alliance, shaken by the 2018 arrest of its architect-turned-fugitive Carlos Ghosn, and which new managers at each corporations are attempting to get on monitor.

They face stiff competitors from rivals together with Volkswagen Group within the race to provide cleaner, electrical automobiles at an interesting worth for customers.

VW is planning to construct six battery factories in Europe alone by 2030.

De Meo mentioned on Tuesday that Renault and Nissan had been cooperating intently on manufacturing and sourcing parts.

“We’re making lots of selections to communalize issues… battery modules for instance is among the issues we’re discussing proper now,” the CEO added.

Each automakers are nonetheless straining to ship on their very own turnaround plans, and Nissan on Tuesday posted a record annual loss, triggered partly by the COVID-19 pandemic. That may drag on earnings at Renault, which has a stake in its companion.