Japanese carmaker Nissan has announced a sweeping restructuring plan that will see it cut global manufacturing capacity and reduce its workforce by 20,000 — or 15pc — including cancellation of a lithium iron phosphate (LFP) battery plant in Kyushu.
The ‘Re:Nissan' strategy will consolidate vehicle plants from 17 to 10 by the 2027 fiscal year, while streamlining power-train sites and scaling back product complexity.
The company did not say whether the closures and workforce cuts would target electric vehicle (EV), hybrid or internal combustion engine (ICE) production, but said it would pause advanced vehicle programmes beyond the 2026 fiscal year.
The plant cancellations and reprioritisation of resources suggest a near-term shift away from EV expansion, which could erode demand for Argus-assessed metals for use in batteries, motors and other applications, alongside phosphate used in LFP chemistries.
The firm said 3,000 engineers will be redeployed from future model work to support immediate cost cutting. Nissan is targeting ¥500bn ($3.2bn) in savings, split evenly between fixed and variable expenses.
The company also said it will cut the number of platforms it operates to 7 from 13 by 2035 and reduce parts complexity by 70pc. It is not clear whether cuts to product development or headcount are linked directly to the LFP project cancellation.
Carmakers across Japan and outside China have slowed battery investment in response to an increasingly uncertain EV demand environment in which purchasing incentives have been rolled back and competition from Chinese brands has intensified.
Nissan will continue EV development through partnerships, including a new battery EV project for Mitsubishi in North America and collaboration with Honda on vehicle intelligence and electrification.
