Nissan Motor announced this Friday that it has abandoned the plan to build a factory for electric vehicle batteries in the Kyushu region, which would have involved a projected investment of $1.1 billion.
The third-largest automaker in Japan had announced in January the plan to construct a lithium iron phosphate battery factory in the city of Kitakyushu (Fukuoka) that would create around 500 jobs.
“Nissan is taking immediate action, exploring all options to recover its performance,” said the Japanese brand in a statement regarding the decision, indicating Nissan’s determination to scale back its ambitions in the domestic market.
According to the Japanese newspaper “Nikkei,” the Japanese government had allocated support for the project, which will now not proceed. The new factory was expected to begin production in July 2028 and would have an annual production capacity of 5 gigawatt-hours (GWh).
It is worth noting that Nissan announced at the end of 2024 a cost-cutting plan that involves eliminating nine thousand jobs worldwide and reducing production capacity by 20%.
