May 12, 2008 - Renault and Nissan, which in January signed a deal with California firm Project Better Place to begin mass-producing electric cars, may pour as much as $1 billion into the venture, Reuters reports.

The Renault-Nissan alliance is expected to spend between $500 million and $1 billion in the first phase of the project, according to Shai Agassi, CEO of Project Better Place. "This is the cost for a three-year car program," Agassi told reporters at the unveiling of his company's electric-car prototype.

Under the deal, Renault will supply the vehicles while Nissan, in partnership with NEC, will develop the lithium-ion battery packs.

Project Better Place says it will begin deploying its electric cars in 2010, beginning with the Israeli and Danish car markets.