Because it struggles to identify problems around, Nissan has scrapped plans to build a new lithium-iron-phosphate (LFP) battery factory in Japan. The technology had been expected to drive down the cost of EV batteries, allowing manufacturers to stay competitive with market leaders such as BYD. As a warning signal blares loudly, Nissan is poised to cut approximately 20,000 positions, equivalent to around 15% of its global workforce, in a move that signals significant restructuring within the company.
Nissan scraps plans to build a new electric vehicle (EV) battery plant in Japan.
Nissan is struggling to prove its commitment to transparency to corporate stakeholders. Japan’s leading automaker announced on Friday that it will be shelving plans to build a new facility in the country, which was intended to produce lithium iron phosphate (LFP) batteries.
Nissan is reportedly considering all options to revitalize its performance, amid ongoing efforts to turn the company around. As part of this strategy, the automaker will continue working on a plan for electric vehicle (EV) batteries that aligns with market demands.
Nissan has secured clearance from Japan’s Ministry of Economy, Trade and Industry (METI) to establish a state-of-the-art electric vehicle battery production facility within its territory, with the approval granted in September.
Nissan plans to introduce its first-ever all-battery-powered vehicles into its Miniature Autonomous Vehicle lineup starting from 2028, as part of a substantial investment exceeding $1 billion (approximately 153.3 billion Japanese yen).
Nissan is poised to receive up to ¥55.7 billion ($384 million) in government support to bolster its domestic supply chain.
Like several major Japanese automobile manufacturers, Nissan is currently grappling with declining gross sales in key markets such as China and North America. The company reported a staggering internet loss of ¥671 billion (approximately $4.5 billion) for its fiscal year ending March 2025.
The brand-new lithium-ion phosphate (LFP) plant is expected to help Nissan reduce the cost of its electric vehicle (EV) batteries by 20-30 percent, featuring an initial production capacity of up to 5 gigawatt-hours annually.
This year, Nissan plans to introduce its all-new LEAF model in the United States and Canada. Following its reveal of the latest electric vehicle (EV) in March, Nissan declared that the newly updated LEAF boasts “substantial upgrades.”
Nissan’s U.S. lineup will soon feature a brand-new LEAF electric vehicle, as well as a “Journey-focused” SUV, according to sources at the automaker.
Nissan replaced its iconic hatchback design with a more contemporary crossover-inspired silhouette. The software should also include a local NACS port for seamless integration with Tesla Superchargers at entry points.
Nissan’s head of car packaging, François Bailly, has hinted that the upcoming LEAF electric vehicle may boast an official WLTP-rated range of 373 miles (600 km), pending official specs and pricing announcements closer to its launch.
Nissan has unveiled a major restructuring plan, aiming to cut its global workforce by approximately 20,000 employees by fiscal year 2027, a significant increase from the previously announced reduction of around 9,000 jobs. In its final year of existence, Nissan employed more than 133,000 workers globally.
The Japanese automaker has introduced a new restoration plan, “Re:Nissan,” which kicked off on Tuesday with the aim of slashing prices and boosting efficiency through a discount offering. Nissan aims to cut costs by approximately ¥250 billion to achieve profitability by fiscal year 2026.
By 2027, Nissan plans to close seven manufacturing facilities worldwide, including one in Thailand. The company plans to streamline its global production network by reducing the number of facilities from 17 to 10, paving the way for the introduction of new and opposing vegetation.
Nissan plans to collaborate with partners, including Mitsubishi, which will leverage the next-generation LEAF as the basis for a new electric vehicle in North America.
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Electrek’s Take
Although Nissan initially justified its decision to exit the LFP battery market by citing market demand and a desire to reduce prices as part of its restructuring efforts, abandoning this venture could ultimately hinder its long-term prospects instead of helping the company recover.
BYD and other major electric vehicle (EV) manufacturers are swiftly expanding their market presence in regions such as Southeast Asia, Central and South America, and parts of Europe, where established players like Nissan and Toyota already command a significant share of the market.
Now, BYD is taking aim at Japan. Chinese automaker gears up to release its inaugural mini electric vehicle (EV), a move widely expected to pose a significant threat to Japan’s leading car manufacturers.
Aiming to regain momentum, Nissan’s commitment emerges following Toyota’s President Koji Sato’s revelation that his company is reassessing its goal of producing 1.5 million electric vehicles by 2026.
