The scrapped plant, part of a planned investment exceeding $1 billion (153.3 billion yen), was expected to receive up to 55.7 billion yen ($384 million) in government support to bolster Japan’s domestic EV supply chain. With an annual production capacity of 5 GWh, the facility was projected to reduce EV battery costs by 20% to 30%, enhancing Nissan’s competitiveness in the EV market.
Nissan’s chief of vehicle programs, Francois Bailly, had earlier shared plans for the next-generation LEAF EV, set to launch later this year in the U.S. and Canada. Bailly told TopGear.com: “The new LEAF is expected to have 373 miles (600 km) driving range (WLTP).” The updated model features a crossover-like design and a native NACS port for Tesla Supercharger access, with official specifications to be announced closer to launch.
Facing weaker sales in key markets like North America and China, Nissan anticipates a net loss of up to 750 billion yen ($5.2 billion) for the fiscal year ending March 2025. As part of its recovery strategy, the company is evaluating cost-cutting measures, including a workforce reduction of approximately 20,000 jobs, or 15% of its global staff, according to a Nikkei report on May 12, 2025. Nissan, which employed over 133,000 people last year, also plans to close a plant in Thailand, with potential additional closures under consideration.
Nissan stated that it will continue to develop an EV battery strategy aligned with market demands, though the decision to abandon the LFP plant may impact its long-term competitiveness. The company is focusing on immediate financial recovery while maintaining its commitment to EV development, including the upcoming LEAF and other models in its U.S. lineup.
The cancellation reflects broader challenges for Japanese automakers as global competitors like BYD expand in regions such as Southeast Asia, Central and South America, and Europe. BYD’s planned launch of a mini EV in Japan next year could further intensify competition in Nissan’s home market, prompting the company to reassess its strategies to remain viable in the evolving EV landscape.
