Nissan has decided to cancel the planned $1.1 billion LFP battery plant in Kitakyushu, Fukuoka Prefecture. The plant was initially set to start operations in July 2028 with a 5 GWh annual capacity, Reuters news report said.
The decision was made after a reassessment of investment efficiency, suggesting a shift in focus and strategic cost-cutting measures.
Nissan is implementing cost-cutting strategies, including plans to reduce its workforce. This includes early retirement offers for several hundred administrative staff in Japan, marking the first such move since 2007.
Ivan Espinosa, who took over as CEO of Nissan, is steering the company through a restructuring phase that includes slashing 9,000 jobs globally, reducing production capacity by 20 percent, and closing plants.
Financial Outlook: Nissan is facing substantial financial losses, with expected net losses of 700-750 billion yen for the fiscal year ending in March, driven by impairment charges.
This indicates a shift in Nissan’s EV strategy, focusing on cost reduction and operational restructuring rather than expanding its battery manufacturing capacity in Japan.
Under its “Ambition 2030” vision and the “The Arc” business plan, Nissan aims to accelerate electrification by introducing 34 new electrified models, including 19 all-electric vehicles, by fiscal year 2030. The company projects that electrified vehicles will constitute 40 percent of its global sales mix by fiscal year 2026, increasing to 60 percent by the end of the decade.
Investment in Battery Technology
Nissan is investing significantly in battery technology, focusing on developing all-solid-state batteries (ASSBs) with the goal of launching them by fiscal year 2028. These batteries are expected to reduce charging time to one-third and lower battery costs, aiming for cost parity between EVs and gasoline vehicles.
Expansion of Battery Production Capacity
The company plans to increase its global battery production capacity to 52 GWh by fiscal year 2026 and 130 GWh by fiscal year 2030.
Regional Developments
United Kingdom
In May 2025, Nissan’s battery partner AESC secured £1 billion in funding to construct a second gigafactory in Sunderland, UK. This facility is expected to produce up to 15.8 GWh of batteries annually, sufficient for approximately 300,000 EVs, and create over 1,000 jobs.
India
Nissan plans to launch three new models in India and establish the country as an export hub, targeting 100,000 units. The company’s manufacturing operations in Chennai, through the Renault-Nissan alliance, have an installed annual production capacity of 480,000 units.
GreentechLead.com News Desk