Nissan is abandoning its plans to assemble a brand new lithium iron phosphate (LFP) battery plant in Japan, a facility meant to cut back EV battery prices and improve competitiveness towards market leaders equivalent to BYD. In a bid to navigate monetary challenges, Nissan can be poised to chop 20,000 jobs, equal to roughly 15% of its workforce.
The automaker’s announcement indicated a shift in focus, stating that it should take into account all choices to enhance its efficiency and can as a substitute devise a battery technique aligned with market calls for. The brand new plant, which had solely not too long ago acquired governmental approval, was projected to assist the manufacturing of LFP batteries for Nissan’s mini automobiles, with anticipated investments exceeding $1 billion.
This facility was deliberate to profit from roughly $384 million in authorities funding to develop a neighborhood provide chain. Nissan’s choice arises as the corporate grapples with declining gross sales in essential world markets like China and North America. The agency’s web loss for the fiscal 12 months ending March 2025 reached 671 billion yen (round $4.5 billion).
The cessation of the LFP battery plant was seen as a big setback because it was supposed to assist minimize EV battery prices by 20% to 30%, with an anticipated manufacturing capability of 5 GWh yearly.
Regardless of the challenges, Nissan is about to introduce the next-generation LEAF within the US and Canada later this 12 months, boasting vital enhancements in driving vary. The redesigned automobile has shifted from a standard hatchback to a crossover fashion and can function a local NACS port for compatibility with Tesla Superchargers. Whereas detailed specs and pricing are but to be introduced, the brand new LEAF is believed to attain a driving vary of as much as 373 miles (600 km) below the WLTP testing methodology.
In a strategic transfer to reshape its operations, Nissan plans to cut back its world workforce by 20,000 by fiscal 12 months 2027, considerably greater than the 9,000 jobs beforehand indicated. That is a part of its new restoration initiative, dubbed “Re:Nissan,” aimed toward chopping prices by 250 billion yen and reinstating profitability by fiscal 12 months 2026.
Nissan additionally plans to shut seven manufacturing amenities worldwide, streamlining its operations from 17 crops to 10. Nonetheless, the corporate emphasizes its dedication to partnerships, together with collaboration with Mitsubishi on a brand new EV mannequin primarily based on the upcoming LEAF.
The impression of Nissan’s choice could hinder its long-term prospects, significantly as rivals like BYD proceed to broaden their market presence in Asia, Central/South America, and components of Europe. In the meantime, BYD is about to launch its first mini EV in Japan, posing a big aggressive risk to native producers.
This shift comes shortly after Toyota’s management introduced a reevaluation of its formidable EV gross sales targets for 2026.
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