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.
Nissan abandons plans for brand spanking 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 would proceed engaged on a method 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 have been set to be put in in Nissan’s mini automobiles 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 dealing with weaker gross sales in key markets like China and North America. The corporate expects to publish a internet loss as excessive as 750 billion yen ($5.2 billion) for the fiscal yr ending March 2025.
The brand new LFP plant was anticipated to assist Nissan minimize 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 can have “important vary enhancements.”
Nissan dropped the enduring 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 automobile packages chief, Francois Bailly, advised TopGear.com the brand new LEAF is anticipated to have 373 miles (600 km) driving vary (WLTP)
Electrek’s Take
Though Nissan cited “market wants” and is trying to minimize prices as a part of its turnaround plans, abandoning the LFP battery plant will doubtless solely set it again additional in the long term.
BYD and different main EV manufacturers are shortly 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 an excellent portion of gross sales.
Now, BYD is taking intention at Japan. The Chinese language automaker plans to launch its first mini EV, or kei automotive, subsequent yr, which is anticipated to be “an enormous risk” 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
