Source: Getty Images/ Petmal
The planned LFP battery plant in Kitakyushu City is expected to cost more than $982 million to Nissan
Nissan Motor Corp. has signed an agreement with Fukuoka Prefecture and Kitakyushu City in Japan to construct a new factory to produce lithium iron phosphate (LFP) batteries, Nissan announced Jan. 22.
The planned battery plant will be built in the Hibikinada area of Wakamatsu Ward, Kitakyushu City, Fukuoka Prefecture, Nissan said, adding that with the signing of this agreement, the project has officially begun. It is expected to make a significant contribution to revitalizing the local economy and creating new jobs.
According to the company, the planned LFP battery plant will come up on a site spread across an area of approximately 150,000 square meters. The construction of the planned battery manufacturing facility, which is slated to begin in 2025, is expected to cost ¥153.3 billion (over $982 million) for the company. The LFP battery plant is expected to begin operations in fiscal year 2028 and is expected to create 500 new jobs at the site.
The Yokohama-headquartered company, however, did not disclose the planned annual production capacity of the upcoming LFP facility in Japan. That said, in a press note released in September 2024, the company mentioned that it was looking at building a production capacity of about 5 GWh for LFP batteries in Japan.
The carmaker had received a certification from the Ministry of Economy, Trade and Industry (METI) in Japan as the government body approved its plans of developing and mass-producing in-vehicle LFP batteries locally. It is understood that through local development and mass production of LFP batteries in Japan, Nissan aims to establish a local footprint for affordable batteries while strengthening its supply chain. The move is aligned with the Japanese government’s policy to promote the use of electric vehicles powered by LFP batteries.
Nissan CEO and President Makoto Uchida has already said that the carmaker plans to adopt LFP batteries to provide more affordable EVs to its customers globally. The LFP batteries that will be developed and produced by Nissan in Japan are expected to be installed in electric mini-vehicles starting in fiscal year 2028.
Nissan Executive Vice President and Chief Manufacturing Officer Hideyuki Sakamoto said, “We feel it is significant that we can launch new electrification initiatives in Kyushu in this milestone year marking 50 years since we began production here. To meet the diverse needs of our customers, Nissan will work to develop a wide range of EVs and highly competitive batteries, including LFP batteries.”
Several global carmakers are increasingly looking at LFP batteries with an aim of keeping EV development costs low. While LFP batteries can not only deliver in terms of meeting affordability parameters, they are also safer when compared to available lithium-ion batteries with nickel cobalt manganese (NCM) chemistry. That said, with improving technology, LFP batteries are also able to deliver improved performance. Global carmakers are working with their battery suppliers to build local supply chains for LFP batteries. French carmaker Renault, which is an emerging example on this front, has tied up with CATL and LG Energy Solution (LGES) to establish local supply chains for LFP batteries in Europe.
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