Nissan Motor Co. has confirmed it will no longer proceed with its previously announced ¥153.3 billion (US$1.1 billion) electric vehicle (EV) battery facility in Kitakyushu, southern Japan. The decision marks a significant revision to the automaker’s domestic investment strategy as it undertakes sweeping turnaround measures under new leadership.
The lithium iron phosphate (LFP) battery plant, first unveiled in January, was projected to generate approximately 500 jobs and deliver a production capacity of 5 gigawatt-hours (GWh) annually. It was originally scheduled to commence operations in or after July 2028. The project had also qualified for a potential government subsidy of up to ¥55.7 billion under Japan’s industrial policy initiatives.
In a statement issued on Friday, Nissan said: “The company is taking immediate turnaround actions and exploring all options to recover its performance. After careful consideration of investment efficiency, we have decided to cancel the construction of a new LFP battery plant in Kitakyushu City, Fukuoka Prefecture.”
The decision reflects a recalibration of Nissan’s domestic ambitions as it responds to ongoing financial headwinds and evolving strategic priorities. The automaker is currently undergoing a broad operational restructure under CEO Ivan Espinosa, who assumed leadership from Makoto Uchida last month. Cost-cutting measures include workforce reductions, production capacity optimisation, and site closures.
Last month, the Yokohama-based company forecast a record net loss of between ¥700 billion and ¥750 billion (US$4.8 billion–US$5.1 billion) for the financial year ending March 2025, primarily driven by significant impairment charges.
Nissan is expected to present its financial outlook and provide further detail on its restructuring roadmap during the release of its full-year results on Tuesday.
–Reuters
