Because it scrambles to show issues round, Nissan is scrapping plans to construct a brand new LFP battery plant in Japan. The ability was anticipated to be key to lowering EV battery prices to maintain up with leaders like BYD. With alarm bells ringing, Nissan is making ready to chop 20,000 jobs, or about 15% of its international workforce.
Nissan abandons plans for brand new EV battery plant in Japan
Nissan is scrambling to show the corporate round. The Japanese automaker introduced on Friday that it’ll “abandon plans to construct a brand new plant” in Japan that was scheduled to provide lithium iron phosphate (LFP) batteries.
The choice comes as Nissan is “contemplating all choices to revive its efficiency.” Nissan mentioned it’ll proceed engaged on a technique for EV batteries “aligned with market wants” as a part of its turnaround efforts.
Nissan simply obtained approval to construct the brand new EV battery plant in Japan from the Ministry of Economic system, Commerce, and Business (METI) in September.
The batteries had been set to be put in in Nissan’s mini autos beginning in 2028, a part of an funding of over $1 billion (153.3 billion yen).
Nissan was scheduled to obtain as much as 55.7 billion yen ($384 million) in authorities help to assist construct a home provide chain.
Like different Japanese automakers, Nissan is going through weaker gross sales in key markets like China and North America. The corporate posted a internet lack of 671 billion yen ($4.5 billion) for the fiscal yr ending March 2025.
The brand new LFP plant was anticipated to assist Nissan lower EV battery prices by 20% to 30%, with as much as 5 GWh annual manufacturing capability.
Later this yr, Nissan will launch the next-gen LEAF within the US and Canada. After unveiling the up to date EV in March, Nissan claimed the brand new LEAF may have “vital vary enhancements.”
Nissan dropped the long-lasting hatch design for a extra crossover-like profile. It should additionally include a local NACS port to entry Tesla Superchargers.
Though official specs and pricing will likely be revealed nearer to launch, Nissan’s car packages chief, Francois Bailly, advised TopGear.com that the brand new LEAF is predicted to have 373 miles (600 km) driving vary (WLTP).
Replace 5/13/25: Nissan introduced plans to chop 20,000 jobs globally by fiscal yr 2027, greater than double the 9,000 it beforehand introduced. Final yr, Nissan had over 133,000 workers.
The discount is a part of its new restoration plan, “Re:Nissan,” launched on Tuesday to chop prices and enhance effectivity. Nissan goals to chop prices by 250 billion yen to return to profitability by fiscal yr 2026.
By FY27, Nissan will shut seven manufacturing vegetation, together with one in Thailand. The opposite vegetation have but to be introduced, however the firm mentioned it’ll consolidate international manufacturing vegetation from 17 to 10.
Regardless of this, Nissan mentioned it’ll nonetheless collaborate with companions, together with Mitsubishi, which is able to use the next-gen LEAF as a foundation for a brand new EV in North America.
This can be a growing story. Verify again quickly for the most recent info.
Electrek’s Take
Though Nissan cited “market wants” and is seeking to lower prices as a part of its turnaround plans, abandoning the LFP battery plant will possible solely set it again additional in the long term.
BYD and different main EV manufacturers are rapidly gaining market share in key areas like Southeast Asia, Central, and South America, in addition to components of Europe, the place Japanese automakers like Nissan and Toyota generate a very good portion of gross sales.
Now, BYD is taking purpose at Japan. The Chinese language automaker plans to launch its first mini EV, or kei automotive, subsequent yr, which is predicted to be “an enormous menace” to Japanese automakers.
Nissan’s determination comes a day after Toyota’s President, Koji Sato, mentioned the corporate is “reviewing” plans to promote 1.5 million EVs by 2026.
Supply: Nikkei, Nissan
