Nissan Motor Drops Plan to Construct EV Battery Factory in Kitakyushu; Company Considered Return on Investment

The Yomiuri Shimbun

17:08 JST, May 9, 2025

Nissan Motor Co. has abandoned a plan to construct an electric vehicle battery factory in Kitakyushu, the company said Friday.

In January, the company signed an agreement with Fukuoka Prefecture and the city of Kitakyushu on the location of the factory. However, sluggish worldwide sales have forced the automaker to review its production schedule. The surprising move to drop the plan at such an early stage provides Nissan Motor with an opportunity to accelerate its recovery efforts.

Nissan Motor President Ivan Espinosa visited the Fukuoka prefectural government office on Friday and reported the company’s decision to withdraw from the plan to Fukuoka Gov. Seitaro Hattori and Kitakyushu Mayor Kazuhisa Takeuchi.

According to the prefecture, Espinosa explained that the company concluded it had no other option but to abandon the plan after considering the return on investment.

Under the plan, ¥153.3 billion was to be invested in the factory, which would have commenced construction in fiscal 2025 and begun operations in fiscal 2028.

Nissan decided on the withdrawal in late April.

Toyota Motor Corp. has similar plans to build an electric vehicle battery factory in the town of Kanda in the prefecture. However, the automaker postponed signing an agreement with the prefecture on the location of the factory and is now reviewing that plan. The signing of the agreement had been scheduled for April.