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 decreasing EV battery prices to maintain up with leaders like BYD. With alarm bells ringing, Nissan is getting ready to chop 20,000 jobs, or about 15% of its international workforce.
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’s going to “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 stated 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 Financial 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 assist 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 12 months 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 12 months, 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 could have “important 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 probably be revealed nearer to launch, Nissan’s automobile packages chief, Francois Bailly, instructed TopGear.com that the brand new LEAF is anticipated to have 373 miles (600 km) driving vary (WLTP).
Replace 5/13/25: Nissan introduced plans to chop 20,000 jobs globally by fiscal 12 months 2027, greater than double the 9,000 it beforehand introduced. Final 12 months, Nissan had over 133,000 staff.
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 12 months 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 stated it would consolidate international manufacturing vegetation from 17 to 10.
Regardless of this, Nissan stated it would 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.
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Electrek’s Take
Though Nissan cited “market wants” and is seeking to minimize 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 shortly gaining market share in key areas like Southeast Asia, Central, and South America, in addition to elements of Europe, the place Japanese automakers like Nissan and Toyota generate a very good portion of gross sales.
Now, BYD is taking goal at Japan. The Chinese language automaker plans to launch its first mini EV, or kei automotive, subsequent 12 months, which is anticipated to be “an enormous menace” to Japanese automakers.
Nissan’s choice comes a day after Toyota’s President, Koji Sato, stated the corporate is “reviewing” plans to promote 1.5 million EVs by 2026.
Supply: Nikkei, Nissan
