Posted on 12 May 2025
Nissan is abandoning plans to build an electric vehicle battery factory in southern Japan, as it shifts its focus to recovering performance.
The Japanese carmaker’s plans to mass-produce lithium iron phosphate (LFP) batteries would have seen an investment of JPY 153.3 billion ($1.05 billion). The 5-gigawatt-hour factory in Kitakyushu was set to start construction in the fiscal year 2025, with operations targeted for 2028.
In January, Nissan had also signed an agreement with Fukuoka Prefecture and the city of Kitakyushu for the plant’s location. However, the financially troubled company announced the decision to scrap the planned factory on Friday.
“Nissan is taking immediate turnaround actions and exploring all options to recover its performance,” it says. “After careful consideration of investment efficiency, we have decided to cancel the construction of a new LFP battery plant in Kitakyushu City, Fukuoka Prefecture.”
According to Japan’s Ministry of Economy, Trade and Industry (METI), the plant would receive JPY 55.7 billion in subsidies.
The carmaker said last month it is expecting a net loss of JPY 700-750 billion for fiscal year 2024 that ended in March. A “thorough review” of its production assets has led to impairments of over JPY 500 billion in North America, Latin America, Europe, and Japan, Kallanish notes.
Early this year, Japanese automaker Toyota reportedly postponed the construction of its LFP battery factory, also in the Fukuoka prefecture, citing sluggish EV demand. The factory was expected to start production in 2028.
Source:Kallanish
