Nissan drops plan for $1.1 billion EV battery factory in Japan
In April, Nissan said it expects a net loss USD 4.80 billion-5.14 billion for the financial year that ended in March. The company hopes a restructuring plan spearheaded by new CEO Ivan Espinosa will turn things around.
Nissan Motor has abandoned a plan to build a USD 1.1 billion factory EV battery factory at Kyushu Island in Japan.
In January, the struggling Japanese automaker had signed an agreement with Fukuoka Prefecture and the city of Kitakyushu in Kyushu for the lithium iron phosphate (LFP) battery plant, which was expected to create about 500 jobs.
However, sluggish sales have forced the automaker to review its production schedule, according to a report by Associated Press.
Nissan CEO Ivan Espinosa told the Fukuoka prefectural government office that the company had made the decision after considering the return on investment, the Associated Press report said.
“Nissan is taking immediate turnaround actions and exploring all options to recover its performance,” the company said in a statement, reported by Reuters. “After careful consideration of (the) investment efficiency, we have decided to cancel the construction of a new LFP battery plant in Kitakyushu City, Fukuoka Prefecture.”
In April, Nissan said it expects a net loss USD 4.80 billion-5.14 billion for the financial year that ended in March.
In November 2024, the automaker had announced plans to slash 9,000 jobs and reduce production capacity by a fifth. The company hopes a restructuring plan spearheaded by new CEO Ivan Espinosa will turn things around.