Nissan Advances Electrification with New LFP Battery Plants in Kyushu

Nissan

Strengthening Japan's Position in the Global EV Market

Nissan, a leading Japanese automobile manufacturer, has announced plans to establish new lithium-iron-phosphate (LFP) battery plants in Kyushu, aligning with its aggressive electrification strategy. Set to begin construction during the fiscal year of April 2025 to March 2026, these facilities are a pivotal step in Nissan's commitment to enhancing its battery production capabilities and supporting the expanding electric vehicle (EV) market.

Financial Backing and Production Goals

The new plants are anticipated to start mass production in 2028-29, aiming for a production capacity of about 5 GWh per year. This initiative is supported by Japan's Ministry of Trade and Industry (Meti), which will provide a substantial subsidy of ¥56 billion ($359 million), covering approximately one-third of the total investment. This financial support underscores the government's commitment to fostering domestic battery technology advancements.

Nissan's Global Battery Strategy and Market Challenges

As part of its broader strategy to secure a global production capacity of 135 GWh per year by 2030-31, Nissan is focusing on strengthening its battery supply chain. The Kyushu plants are expected to contribute 10 GWh per year to this goal. However, Nissan faces challenges in the EV market, including a significant drop in net profit and a reduction in global car production capacity, which has affected its profitability and competitive stance.