Renault plans to invite investment in Ampere but would remain the majority shareholder.
Renault also intends to combine its technological, manufacturing, and research and development activities for its hybrid and internal-combustion vehicles in a subsidiary called “Horse”.
The subsidiary is expected to employ an estimated 19,000 people across Europe, China and South America.
Chinese car manufacturer Geely is being considered for a stake in the company.
“We are designing an agile and innovative organization to manage the volatility and accelerated technological evolution of our time,” said Renault CEO Luca de Meo.
Investors on Monday expressed their interest in Renault’s transformation, with the group’s shares climbing 3.77 percent on the Paris stock market.
The company suffered a historic loss in 2020 and its recovery was destabilized by its withdrawal from Russia following Moscow’s invasion of Ukraine.
The value of traditional car manufacturers pales in comparison to new players on the market specializing in electric vehicles such as Elon Musk’s Tesla or Chinese firm BYD.
Renault still needs large investment to accelerate its electric transformation, according to plans it presented in 2020.
US giant Ford has taken similar steps, announcing the creation of the “Ford Model E” earlier this year.
Renault’s sales of traditional internal-combustion vehicles are falling. In the first nine months of 2022, hybrid and electric vehicles represented 38 percent of the brand’s registrations in Europe, a year-on-year increase of 12 percent.
The planned separation of Renault’s electric and conventional production has concerned trade unions after several waves of job cuts.
