Nissan Cancels Plan to Build EV Battery Factory in Japan

KatadataOTO – Japanese automotive manufacturer, Nissan continues to face challenges. Amidst fierce competition for electric cars, Nissan has instead canceled the construction of an EV (Electric Vehicle) battery factory in Japan.

It should be noted that Nissan initially planned to independently develop electric car batteries to reduce production costs in the future.

The batteries that were supposed to be produced were LFP (Lithium Ferro Phosphate) to be installed in Nissan's electric vehicle lineup in the 2028 fiscal year.

Nissan's EV battery assembly facility was part of Nissan's 1 billion USD investment.

Photo : Nissan

Additionally, the Japanese government was reportedly going to provide additional funds of up to 384 million USD to help maintain Nissan's domestic supply.

Before canceling the plan to build the EV battery factory, Nissan had also closed its production facility in Wuhu, China, due to plummeting sales in the country.

This is not surprising, especially considering Nissan recorded a net loss of 750 billion yen (Rp 84 trillion) during the 2024 fiscal year, or the period from April 2024 to March 2025.

Meanwhile in Indonesia, Nissan is following the lead of other Japanese manufacturers who are still more focused on selling hybrid cars or HEVs (Hybrid Electric Vehicles).

Bankruptcy rumors in Japan and the global market were dismissed by a representative of Nissan Indonesia. 

“I don't think the Indonesian market is affected. Because our unit ordering is already fixed now,” said Caca Tobing, National Sales Head of PT NMDI (Nissan Motor Distributor Indonesia) in Senayan some time ago.

Their sales so far are claimed to be good, with the latest MPV (Multi-Purpose Vehicle), the Serena e-Power, as one of the biggest contributors.

Photo : KatadataOTO

“Its contribution (the sales of the Nissan Serena e-Power) can be 50 percent. That's why, in our opinion, e-Power is the answer to the needs of Indonesian customers,” Caca affirmed.

To date, Nissan has not shown any interest in introducing a new electric car. The only EV from Nissan is the Leaf.

Another product rumored to be coming to the country soon is the latest generation of the X-Trail e-Power, adding another hybrid car option for domestic consumers.