Nissan Scraps EV Battery Plant Plan in Japan Amid Restructuring

Tokyo, Japan – Nissan Motor Co., Ltd., an automotive manufacturer, has announced the cancellation of its planned ¥153.3 billion ($1.1 billion) electric vehicle (EV) battery plant in Kitakyushu, Japan, marking a significant shift in its domestic investment strategy. The move comes as the automaker undertakes sweeping restructuring efforts under new CEO Ivan Espinosa, who took the helm in April.

Initially unveiled in January 2025, the lithium iron phosphate (LFP) battery plant was expected to begin operations by July 2028 and create around 500 jobs. The facility, located on Japan’s southwestern island of Kyushu, was projected to have an annual production capacity of 5 gigawatt-hours and had been earmarked for a government subsidy of up to ¥55.7 billion ($37,66,74,592).

Nissan 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.

This strategic pullback reflects a broader reassessment of Nissan’s domestic market ambitions amid ongoing financial challenges. The company recently warned it could post a record net loss of ¥700 billion to ¥750 billion ($4.8 billion to $5.1 billion) for the fiscal year ending March 2025, primarily due to impairment charges.

As part of its restructuring, Nissan plans to offer early retirement to several hundred Japan-based staff, its first domestic job cuts in 18 years. This follows a global plan to cut 9,000 jobs and reduce production capacity by 20%.

The cancellation of the Kitakyushu battery plant underscores the challenges facing Japan’s third-largest automaker as it seeks to regain stability and competitiveness in a rapidly changing global auto industry.

The decision also raises questions about Japan’s role in Nissan’s future EV plans, especially as the company looks to optimize investment returns and streamline operations in the face of mounting financial pressure.