Nissan Motor Co. has officially canceled its planned ¥153.3 billion ($1.1 billion) electric vehicle (EV) battery plant in Kitakyushu, Fukuoka Prefecture, Japan. The project, announced in January 2025, aimed to produce lithium iron phosphate (LFP) batteries with an annual capacity of 5 gigawatt-hours, create approximately 500 jobs, and commence operations by July 2028. 102.7 Super Hits+5Profit by Pakistan Today+5Reuters+5Electrek+5Reuters+5102.7 Super Hits+5
The Japanese government had pledged up to ¥55.7 billion ($384 million) in subsidies for the initiative. However, Nissan’s new CEO, Ivan Espinosa, is steering the company through a significant restructuring phase, focusing on investment efficiency and operational resilience. Electrek+4Profit by Pakistan Today+4Just Auto+4The Sun+5Reuters+5Just Auto+5
The decision to halt the project comes amid broader financial challenges for Nissan, including an anticipated net loss of up to ¥750 billion ($5.2 billion) for the fiscal year ending March 2025. The company is implementing cost-cutting measures, such as reducing manufacturing capacity and considering early retirement options for employees in Japan—the first such domestic reduction in 18 years. 102.7 Super Hits+3Auto World Journal+3Electrek+3Profit by Pakistan Today+1Reuters+1
Nissan stated that after a thorough evaluation of investment efficiency, the construction of the new LFP battery plant in Kitakyushu City has been canceled. The company remains committed to exploring all options to recover its performance and continues to work on strategies aligned with market needs.