Japanese electric motor maker Nidec Corp. said Sunday it will set up a joint venture with Brazilian regional jet manufacturer Embraer in the United States to tap the growing demand for electric flying vehicle components.
Nidec will take a 51 percent stake in Nidec Aerospace LLC and will develop electric propulsion systems for the aerospace sector, with the remainder to be owned by the Brazilian partner.
The companies did not disclose the amount of capital required, but did say the new entity will establish a base in St. Louis, Missouri as early as September.
Nidec Aerospace will initially manufacture propulsion systems for electric vertical take-off landing, or eVTOL, vehicles and aim to provide the systems to other aircraft in future, Nidec said in a release.
eVTOL vehicles operate like a drone, using battery power to take off and land vertically, usually with multiple motors and rotors.
Demand for electric flying vehicles is set to surge as the aircraft industry is stepping up efforts to cut greenhouse gas emissions. The global flying car market is expected to reach 60.8 billion yen ($429 million) in 2025 and soar to about 185 trillion yen by 2050, according to Yano Research Institute.
The Japanese motor maker, which is also extending its business to electric cars, will provide its technology for high-output motors, while Embraer is in charge of systems control technology.
The venture will initially supply products to Embraer's flying car subsidiary Eve Air Mobility.
