Nissan Cancels $1.1B EV Battery Plant Amid Major Restructuring

Nissan Motor has scrapped plans to build a $1.1 billion electric vehicle (EV) battery plant in Kitakyushu, Japan, signaling a major shift in its domestic EV strategy. The canceled project, announced in January, was expected to produce lithium iron phosphate (LFP) batteries and create around 500 jobs. The plant was set to launch operations in 2028 with an annual output of 5 gigawatt-hours (GWh).

The decision comes as new CEO Ivan Espinosa initiates sweeping restructuring efforts, including job cuts, reduced production capacity, and plant closures. In a statement, Nissan said it is "taking immediate turnaround actions" and is reassessing investment efficiency to improve financial performance. “After careful consideration, we have decided to cancel the construction of a new LFP battery plant in Kitakyushu City,” the automaker said.

The Japanese government had earmarked up to 55.7 billion yen in subsidies for the project, which was seen as a key part of Nissan’s long-term EV strategy. However, financial setbacks have forced the company to scale back. Last month, Nissan forecasted a record net loss of 700 to 750 billion yen ($4.8 billion–$5.1 billion) for the fiscal year ending March, citing heavy impairment charges.

Nissan, Japan’s third-largest carmaker, has faced ongoing struggles in the EV race amid intensifying global competition and shifting consumer demand. The automaker is expected to announce its full-year earnings and provide updates on its recovery roadmap next Tuesday.

This cancellation underscores the pressure on legacy automakers to balance aggressive EV goals with short-term financial realities, especially as market conditions and technology economics continue to evolve. Nissan’s next moves will be closely watched as the company attempts a turnaround in a highly competitive global EV market.