Nissan has decided to scrap its plans for a $1.1 billion electric vehicle (EV) battery production facility in Kitakyushu, located in southwestern Japan. Announced earlier in January 2025, the plant was set to manufacture lithium iron phosphate (LFP) batteries, with an expected annual capacity of 5 gigawatt-hours and the creation of around 500 jobs.
The Japanese government had pledged up to ¥55.7 billion ($380 million) in subsidies to support the project. However, Nissan’s recent decision to cancel the plan reflects broader financial restructuring efforts under newly appointed CEO Ivan Espinosa. The company is dealing with significant financial difficulties, projecting a record net loss of ¥700 billion to ¥750 billion ($4.8–$5.1 billion) for the fiscal year ending March 2025.
In response to these challenges, Nissan is cutting costs by reducing manufacturing capacity and shutting down certain facilities. This move represents a shift in the company’s investment approach, with a focus on streamlining operations and pursuing more sustainable and efficient business strategies.
The company plans to release more detailed financial projections and outline further recovery actions in its upcoming full-year financial report.
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