Nissan has introduced it is not going to proceed with plans to determine a brand new lithium iron phosphate (LFP) battery plant in Japan. This determination is a part of the corporate’s broader try to get better from monetary difficulties.
The Japanese automaker made this announcement on a latest Friday, stating that it’s “abandoning plans” for the plant, a facility that was anticipated to play a big position in decreasing EV battery prices and enabling the corporate to compete with trade leaders reminiscent of BYD.
Nissan indicated it’s at present “contemplating all choices to revive its efficiency” and can proceed to pursue a battery technique that aligns with market calls for. The brand new plant obtained approval from Japan’s Ministry of Financial system, Commerce, and Business (METI) in September and was slated to help battery manufacturing for Nissan’s mini autos beginning in 2028, backed by an funding exceeding $1 billion.
The automaker was additionally set to obtain roughly 55.7 billion yen ($384 million) in authorities help to develop a home provide chain for battery manufacturing. The deliberate LFP plant aimed to cut back EV battery prices by 20% to 30%, with an annual manufacturing capability of 5 GWh.
Nissan is dealing with a decline in gross sales in essential markets reminiscent of China and North America and expects to report a internet lack of as much as 750 billion yen ($5.2 billion) by the fiscal 12 months’s finish in March 2025.
This 12 months, Nissan plans to launch the next-generation LEAF within the US and Canada. The up to date mannequin guarantees important enhancements in vary. The design will shift from the normal hatchback to a extra crossover-style profile and can characteristic a local NACS port to make the most of Tesla Superchargers. Whereas particular specs and pricing might be disclosed nearer to the launch, early statements recommend a possible driving vary of 373 miles (600 km).
Within the aggressive panorama of the EV market, the choice to scrap the battery plant may hinder Nissan’s efforts to regain footing, particularly as opponents like BYD increase their presence in areas historically dominated by Japanese manufacturers. In a associated growth, Toyota’s President not too long ago talked about plans to reassess the corporate’s bold EV gross sales targets.
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