Tokyo: Japanese automaker Nissan Motor Co.and its French partner, Renault SA, have run into difficulties in discussions to redraw their partnership because of a dispute over electric vehicle patents.

Long frustrated with its disadvantageous position in the alliance, Nissan has been keen to reduce Renault’s stake in the Japanese company from the current 43 pct to 15 pct, the same level as Nissan’s stake in Renault.

Initially, the two automakers planned to announce a new shape of their partnership as early as Tuesday by focusing on the capital relationship first while leaving aside time-consuming patent negotiations, according to sources familiar with the matter.

But they had to delay the announcement after becoming unable to leave aside the patent negotiations.

Renault needs to receive capital injections from Nissan and another Japanese partner, Mitsubishi Motors Corp., into its new electric vehicle company that it plans to take public in the latter half of 2023.

Talks on the electric vehicle investment involve complicated patent negotiations.

This has been “bundled with” discussions to review the capital relationship, a senior Nissan official said.

Patent negotiations include the handling of past rights as well as the future value of all-solid-state batteries, a key component in extending the range of an electric vehicle.

Alphabet Inc.’s Google and chipmaker Qualcomm Inc. also take part in Renault’s electric vehicle project, a situation that makes the patent negotiations even more difficult.

Nissan is more advanced than Renault in terms of the development of all-solid-state batteries.

But Renault CEO Luca de Meo remains bullish in the negotiations citing the French maker’s electric vehicle patents.

Still, the two companies are “having discussions while facing in the same direction,” a senior Nissan official said.

The Renault CEO said Tuesday the three companies will make an announcement within a few weeks.

JIJI Press