Due to production challenges and quality concerns, Nissan has abandoned its plan to build a lithium-iron-phosphate (LFP) battery manufacturing facility in Japan. Power was seen as a crucial factor in driving down EV battery costs, allowing China’s manufacturers to remain competitive with industry leaders like BYD. As concerns escalate, Nissan prepares to slash approximately 15% of its global workforce with alarm bells loudly clanging in the background.
Japan-based automaker Nissan has scrapped plans to construct a new electric vehicle (EV) battery manufacturing facility in the country.
Nissan is racing to prove its viability to the corporate world. Japanese automaker announces abandonment of plans for a new facility in Japan, originally intended to manufacture lithium iron phosphate batteries.
As Nissan contemplates options to revitalize its performance, the company is exploring a strategy for electric vehicle batteries aligned with market demands as part of its recovery plan.
Nissan has received approval from Japan’s Ministry of Financial system, Commerce, and Industry (METI) to build a brand-new electric vehicle (EV) battery plant in September.
Beginning in 2028, Nissan’s compact cars will feature batteries as part of a major investment exceeding $1 billion, or approximately 153.3 billion yen.
Japan’s government agreed to provide Nissan with up to ¥55.7 billion (approximately $384 million) in support to build out its domestic supply chain.
Similar to Japan’s other prominent automotive brands, Nissan is currently grappling with sluggish demand in crucial markets such as China and North America. The corporation anticipates submitting a staggering web loss of approximately ¥750 billion ($5.2 billion) by the end of its fiscal year in March 2025.
Nissan’s recently inaugurated lithium-iron-phosphate (LFP) plant is poised to help the company reduce electric vehicle (EV) battery costs by 20% to 30%, with a projected annual production capacity of up to 5 gigawatt-hours.
Later this year, Nissan will debut its next-generation LEAF in the United States and Canada. Nissan revealed its upgraded electric vehicle (EV) in March, touting the all-new LEAF as featuring “substantial improvements.”
Nissan has abandoned its iconic hatchback styling for a more modern, crossover-inspired silhouette. It should also include a local NACS port for access to Tesla Superchargers.
According to Nissan’s car applications chief, Francois Bailly, the all-new LEAF is anticipated to boast a WLTP-verified driving range of approximately 373 miles (600 km), with official specs and pricing set to be revealed closer to launch.
As a result of a recent report, Nissan has announced plans to reduce its global workforce by approximately 20,000 positions, which represents around 15% of its total employees, with the majority of cuts expected to occur in Japan and other international markets. The revised estimate significantly surpasses the initial 9,000 units that Nissan had previously announced.
In its final year, Nissan had a workforce of more than 133,000 employees. The corporation may be considering shuttering a factory in Thailand. Reports suggest that two crop-related projects may be discontinued, although Nissan has yet to confirm whether this is indeed the case and where such closures might occur.
This could be the start of something big. Re-examining current data will ensure we stay informed.
Electrek’s Take
While citing market demands and aiming to reduce prices as part of its revival strategy, Nissan’s decision to discontinue the LFP battery plant will ultimately hinder its recovery efforts in the long run.
As the electric vehicle (EV) landscape evolves, BYD and other major EV manufacturers are gradually gaining traction in key regions such as Southeast Asia, Central, and South America, as well as select components of Europe, where Japanese brands like Nissan and Toyota already hold a significant market share.
As BYD sets its sights on the Japanese market. The Chinese automaker intends to unveil its inaugural mini electric vehicle (EV), a kei automobile, next year, posing an “enormous risk” to Japanese manufacturers in the process.
Nissan’s commitment comes on the heels of Toyota’s President, Koji Sato, revealing that the company is reassessing its goal to sell 1.5 million electric vehicles by 2026.
