Nissan will spend 17.6 billion. USD over 5 years on electrification

TOKYO, Nov. 29 (Reuters) – Nissan Motor Co (7201.T) announced that it will spend 2 trillion yen ($ 17.59 billion) over the next five years to accelerate vehicle electrification with the goal of catching up with rivals in one of the fastest growing areas of the automotive industry.

This is the first time Japan’s No. 3 automaker, one of the world’s first mass-market electric vehicle (EV) manufacturers with its Leaf model more than ten years ago, unveils a comprehensive electrification plan.

Nissan will spend twice as much as in the previous 10 years on a share of the electric car market as competitors, including Toyota Motor Corp. (7203.T) and newer players such as Tesla Inc (TSLA.O), go ahead with their electric car plans.

Sign up now for FREE unlimited access to

Nissan said Monday that it will introduce 23 electrified vehicles by 2030, including 15 electric vehicles (EVs), and wants to reduce the cost of lithium-ion batteries by 65% ​​within eight years. It also plans to introduce potentially game-changing all solid state batteries by March 2029.

These commitments, said CEO Makoto Uchida, would make electric cars affordable for more drivers.

“We will advance our efforts to democratize electrification,” he said in an online presentation.

Some analysts were not impressed with Nissan’s plan, noting that it was already lagging behind competitors in the electrification game.

Masayuki Otani, senior analyst at Securities Japan Ltd, also said that car stocks fell on Monday due to market concerns about a new coronavirus variant and the effect it could have

have on production plans.

“Nissan’s long-term vision comes at a time when the market may not be receptive to it. You could say it represents a huge increase in investment, it feels cautious,” he said.

Shares of Nissan fell as much as 5.1% on Monday, which is worse than its big rivals. They fell 3.8% in afternoon trading.

Nissan shares by strategy

Although still only a small proportion of vehicles on the roads, global electric car registrations grew by 41% in 2020, although the overall car market fell by almost a sixth, according to the International Energy Agency (IEA).

At the UN climate summit in Glasgow this month were major automakers, including General Motors (GM.N) and Ford Motor Co (UN), signed a declaration committing them to phase out fossil vehicles by 2040.

However, Nissan has not committed to abandoning petrol cars. It said Monday that half of its vehicle mix will be electrified by 2030, including electric cars and its e-Power hybrids.

As Nissan is ready to compete for the growing demand for electric cars, in July Nissan pledged $ 1.4 billion with its Chinese partner Envision AESC to build a giant battery factory in the UK that will operate 100,000 vehicles a year, including a new crossover. model. Read more

Rivals, including Toyota, who also refused to sign the Glasgow pledge, are also increasing their battery production.

The world’s largest automaker by volume of production plans to have 15 battery-powered vehicle models (BEV) globally by 2025 and will spend $ 13.5 billion by 2030 to develop cheaper, more powerful EV batteries and their supply system.

Toyota said it aims to introduce solid state batteries in the mid-2020s.

These power packs are attractive to automakers because they are more energy efficient and less likely to ignite than liquid lithium-ion power packs. However, they are prone to cracking and are currently more expensive to produce.

Nissan said its goal is to bring the price of solid state batteries down to $ 75 per liter. kilowatt-hour (kWh) in 2028 and further cut it down to $ 65 per kilowatt-hour. kWh in the future to make them competitive with petrol cars.

($ 1 = 113.7000 yen)

Sign up now for FREE unlimited access to

Reporting by Tim Kelly; Additional reporting by Maki Shiraki; Editing Muralikumar Anantharaman

Our standards: Thomson Reuters trust principles.


Give a Comment