Nissan Halts $1.1 Billion EV Battery Plant amid Financial Struggles
Nissan closes down $1.1B battery plant for EV in Japan due to loses affecting its plans of E-crisis and expansion of concept cars.
Nissan Motor has abandoned its $1.1 billion plan to build an electric vehicle (EV) battery plant in Kitakyushu Japan because of financial difficulties. The move is a big slap on its erstwhile ambitious EV and concept cars roadmap, which included a massive deployment of lithium iron phosphate (LFP) battery.
The plant, which was announced in January 2025, but has since been cancelled, was the flagship part of Nissan’s electrification strategy. As the facility was intended to supply the company’s swelling EV and concept cars selection, its projected production was 5GWh and the number of new jobs, that would be created, would be 500. Construction was planned to start in April 2025 and full scale production in 2028.
Nevertheless increased losses ($5.3bn for FY2024-25) and recent changes to senior management have pressed Nissan into reassessing its priorities. Ivan Espinosa, who replaced Makota Uchida as CEO a while ago, is now guiding the company along the lines of a restructuring.
“Considering the investment efficiency, we have decided to terminate construction of a new LFP battery plant,” the automaker said in a statement.
As Japan’s major EV manufacturer, Nissan’s withdrawal is of concern for the future of EV and concept cars vision, given the push made by global rivals. Now with a stranded project and a collapsed merger with Honda, the automaker’s path into electrification has a new edge of uncertainty.
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