Nissan aims to equip its electric vehicles with lithium-iron-phosphate (LFP) batteries as a means to drive down the cost of EVs. The cost of batteries using these supplies drops by a significant 20% to 30%, making them more economical than their lithium-ion counterparts featuring NCM materials. The transfer will thrust it directly into competition with BYD, a dominant player in the LFP battery market.
Nissan aims to reduce electric vehicle (EV) production costs by cultivating lithium-iron-phosphate (LFP) batteries in-house.
Although Nissan fell behind China’s BYD in passenger car sales for November, the company is developing a strategy to reclaim its market share.
Nissan reportedly plans to begin using cost-effective lithium-iron phosphate (LFP) batteries in its electric vehicles, according to a newly released study. According to reports, electric vehicles (EVs) are anticipated to become available for purchase in burgeoning markets by as early as 2026.
Although LFP batteries offer a significant cost advantage, being up to 30% cheaper than their NCM counterparts, they also exhibit substantially lower energy density.
Lithium-iron-phosphate (LFP) batteries typically exhibit a driving range that is 20% to 30% shorter compared to Nickel-Cobalt-Manganese (NCM) counterparts. However, such a solution might be fitting in current contexts. Nissan is at the moment growing the brand new battery tech at its R&D facility in Japan. Nissan may opt to manufacture LFP batteries in-house at its Yokohama facility, as part of a broader suite of operations.
Nissan anticipates introducing brand-new batteries for its electric vehicles (EVs) by as soon as 2026. Currently seeking partners to further develop its technology and plans to bring in external expertise from other companies.
According to the China Automotive Battery Trade Innovation Alliance, BYD held a commanding lead in the LFP battery market as of last November, boasting a significant 41.1% market share. CATL’s rival took the runner-up spot with a significant 33.9% market share.
As BYD’s Blade Battery powers electric vehicles worldwide, its global reach and impact become increasingly evident. The electric BYD Seal, paired with the BYD Blade, boasts a remarkable range of up to 435 miles (700 km). Chinese automaker BYD introduced its electric sedan to the Mexican market last month, with a starting price of $44,600 or approximately 778,800 pesos.
With BYD’s innovative Blade Battery technology playing a crucial role, the company managed to surpass Tesla and claim the top spot for electric vehicle (EV) sales globally during the fourth quarter of the year? Chinese electric vehicle manufacturer acquired almost 1.6 million electric vehicles in the past year as it further penetrates newly entered international markets. Nissan is reportedly considering acquiring a website from Chinese automaker BYD.
Electrek’s Take
Although it took Nissan more than a decade to follow up on the groundbreaking LEAF with its second electric vehicle, the Ariya, it appears they are now making up for lost ground.
Despite falling behind electric vehicle (EV) pioneers such as Tesla and BYD, Nissan aims to regain its footing in the EV market.
Nissan’s CEO, Makoto Uchida, stated that the company must “clean house” in order to remain competitive.
As part of its mid-year review, the automaker is poised to unveil a new electric vehicle strategy aimed at righting the company’s course. Nissan’s chief executive, Uchida, stated that the company cannot rely on its past business strategies going forward. The newly unveiled approach, set to debut in March, aims to address how Nissan will contend with affordable models emerging from Chinese manufacturers.
Nissan has announced plans to roll out 19 new electric vehicles (EVs) by 2030, but this strategy may be subject to revision as the company prepares to unveil a fresh approach. While Ariya’s sales and manufacturing are picking up momentum, affordable alternatives could help Nissan reclaim its competitive edge.
