Japan’s Nissan to build LFP battery plants in Kyushu

Market: Battery materials, Metals
22/01/25

Japanese automobile manufacture Nissan will build new lithium-iron-phosphate (LFP) battery plants in Kyushu, in line with its electrification strategy, the company announced today.

Nissan plans to start building the new facilities during the April 2025-March 2026 fiscal year, before starting mass production in 2028-29, according to the firm.

Nissan did not disclose the production capacity of the new plants, but it is expected to be around 5 GWh/yr, according to the country's ministry of trade and industry (Meti). Meti will provide a maximum subsidy of ¥56bn ($359mn) for Nissan's investment in the LFP plants, which should account for around one-third of the total investment amount.

Building the new LFP plants is part of Nissan's wider battery strategy to secure 135 GWh/yr of global production capacity by 2030-31, with its facilities in Japan expected to total 10 GWh/yr of production capacity. A breakdown by battery type, LFP or lithium-nickel-cobalt-manganese (NCM), is not available.

Nissan has been the country's leading electric vehicle (EVs) manufacturer, but it is struggling to make profits partly because of weak EV demand. The company's net profit slumped by 94pc on the year to ¥19.2bn in April-September. This prompted it to cut global car production capacity, including for EVs, by 20pc to around 4mn units/yr.

Nissan in December 2024 started merger negotiations with fellow manufacturer Honda, aiming to collaborate on the electrification of automobiles. But Honda suggested that Nissan's financial situation could cause the proposed merger to be scrapped.

By Yusuke Maekawa

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