Nissan announced that it has abandoned the lithium iron phosphate (LFP) battery factory it planned to establish in Japan. The project, which is considered an important step in the company’s electric vehicle transformation process, had an investment volume of approximately $1 billion.
Nissan terminates giant battery project
The financing and production capacity of the factory, including the $384 million public incentive planned to be provided by the Japanese government, were closely monitored by the entire sector.
The canceled facility was expected to reach an annual battery production capacity of 5 GWh. These batteries were planned to be used in Nissan’s small-class electric vehicles, especially by 2028. With this investment, the company was expected to reduce battery production costs by 20 to 30 percent.
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The cancellation of the factory decision was directly related to Nissan’s recent financial problems. The company is estimated to declare a net loss of approximately $5.2 billion for the fiscal year ending in March 2025.
The basis of this loss is falling sales figures in the Chinese and North American markets. Following the developments, Nissan has entered the process of reconsidering all of its strategic plans.
On the other hand, the company is preparing to launch its completely renewed LEAF model later in the year. The new LEAF, which approaches the crossover design, will carry a charging port compatible with Tesla’s fast charging network.
So what do you think about this development? Do you think Nissan’s decision is correct? You can easily share your views with us in the comments section below.
