French automaker Renault is in talks with Nissan to help the Japanese firm bring to market its own version of Renault's electric Twingo, as the alliance partners seek to speed up an affordable EV offering to fend off Chinese competition.

An electric version of Renault's RENA.PA popular city car, due to reach the market in 2026, is set to be priced at under 20,000 euros ($21,700), making it a key plank in the firm's defence against low-cost Chinese brands like BYD.

Renault had been in talks with Germany's Volkswagen to jointly develop the car, sharing costs that are a key challenge for European carmakers battling cheaper Chinese imports.

Those discussions ended in May, however, and the French company had said it would continue alone.

The European Union imposed tariffs of up to 45% on imported Chinese EVs on Wednesday, but the industry says they will not be enough to stop Chinese firms taking a growing share of the market.

Nissan 7201.T has already worked with Renault on its compact electric Micra. The Japanese company wants to boost its offering in Europe and reduce time to market, its chief executive Makoto Uchida said in a video shared with reporters visiting an Ampere factory in northern France on Wednesday.

Ampere, Renault's specialist EV unit, was carved out a year ago, but plans to IPO the business were scrapped this year amid weakening demand for EVs.

Renault chief executive Luca de Meo said there was no reason to revive the plan unless investors' attitude to EVs changed.

"The real question is whether we are capable of making European industry competitive with the Chinese. We are trying," de Meo said at the same event.

Ampere is also working with Mitsubishi, the third member of Renault's automaking alliance, on an electric C-segment SUV.

Ampere plans to use lithium ion phosphate (LFP) batteries in its cars from 2026, which last longer and are cheaper than nickel and cobalt alternatives.

It is also targeting production of cobalt-free batteries by 2028 that can compete with nickel manganese cobalt (NMC) technology on energy density and are on par with LFP on cost and safety.

Renault has set up a team to study innovation in China and work with local partners to speed up development of its cars.

"By 2028, Ampere will have caught up with the best Chinese players in product performance and cost in an European environment," said de Meo.