PARIS – Brazil’s Embraer Japan’s Nidec Corporation have announced the establishment of a joint venture company named Nidec Aerospace LLC to develop electric propulsion systems for the aerospace industry.

The announcement took place on Sunday June 18, a day before the opening of the first trading day at the 2023 Paris Air Show in Le Bourget, France. Both companies will explore new market opportunities by providing "an agnostic portfolio of products and services worldwide, driven initially by the rise of the Urban Air Mobility (UAM) ventures.

Upon the terms of the Joint Venture, Nidec and Embraer will design, pursue the certification with the respective entities, produce and commercialize next-generation electric propulsion systems based on the expertise of Nidec–a leading electric motor manufacturers in the world,.

Nidec Aerospace will be jointly owned, with Embraer holding 49% of the shares and Nidec the remaining 51%. The Joint Venture company will be headquartered in St. Luis, Missouri in the United States, and it will be supported by both companies' existing industrial plats in Brazil and Mexico.

“Technological innovation will be a key contributor to the International Civil Aviation Organization (ICAO)’s commitment to carbon neutrality by 2050. Nidec Aerospace LLC is a natural extension of both companies’ respective and continual investments in green technologies across multiple industries to accelerate global carbon neutrality,” said Michael Briggs, senior vice president and president of the Motion & Energy Business Unit, at Nidec.

The launch customer of Nidec's proposed electric propulsion system will be Embraer's EVE, the company's UAM division. Besides Nidec, EVE selected BAE Systems to provide the energy storage system for EVE's eVTOLs, and DUC Hélice Propellers will be the supplies of the rotors and propellers.

“Innovation is our future growth driver and a key pillar of our strategic plan. That’s why I’m extremely excited about this strategic partnership with Nidec to develop agnostics solutions for aerospace sector,” said Francisco Gomes Neto, President and CEO at Embraer. “Demand for electric propulsion systems is growing exponentially in the aerospace sector, and we are confident that Nidec and Embraer together can accelerate the development of advanced products to enable the future of sustainable aviation.”

The Joint Venture remains subject to antitrust approvals, other possible regulatory approvals, and customary closing conditions, as well as both companies’ approval in board of directors. The companies expect their transaction to close at the second half of the year.