Nissan added that after the acquisition of the shares held by the Innovation Network Corporation of Japan (INCJ), a state-backed fund, Vehicle Energy Japan will become its consolidated subsidiary, in which it will hold shares alongside existing shareholders Maxell and Hitachi Astemo.

Nissan did not provide any financial details of the deal.

Vehicle Energy Japan develops, manufactures and sells lithium-ion batteries for hybrid vehicles.

“The investment will allow Nissan to secure a stable battery supplier and contribute to the development of next-generation batteries with a competitive edge in terms of both performance and cost,” Nissan said in a statement.

A stable supply of battery materials is among the many challenges being faced by automakers worldwide as stricter environmental regulations accelerate production and sales of cleaner, electrified cars.

Nissan’s rival Honda Motor Co recently said that it had formed a partnership with trading company Hanwa Co to secure stable supply of essential metals used in batteries for electrified vehicles.