Nissan (7201) to spend $17.59bn over 5 years for electrification
03:03, 29 November 2021
Japanese carmaker Nissan Motor will spend JPY2trn ($17.59bn) over the next five years to accelerate the electrification process of its product line-up.
The company aims to introduce 23 electrified models, including 15 new electric vehicles (EVs), by 2030. Furthermore, it expects 50% of Nissan and its luxury brand INFINITI’s line-up to be electric by 2030. In terms of sales mix, the company expects more than 75% of sales in Europe to be from its electric cars, in Japan more than 55%, in China more than 40% and in the US it aims to have 40% of its sales from EVs by 2030.
“The role of companies to address societal needs is increasingly heightened. With Nissan Ambition 2030, we will drive the new age of electrification, advance technologies to reduce carbon footprint and pursue new business opportunities. We want to transform Nissan to become a sustainable company that is truly needed by customers and society,” Makoto Uchida, CEO of Nissan, said in a statement on Monday.
Bringing down battery costs
“With our new ambition, we continue to take the lead in accelerating the natural shift to EVs by creating customer pull through an attractive proposition by driving excitement, enabling adoption and creating a cleaner world,” said Nissan COO Ashwani Gupta.
Following the announcement, Nissan’s shares were trading 3.57% lower at JPY605. Broader markets in Japan were also trading lower because of concerns regarding the Omicron variant of Covid-19. Nikkei 225 was down 0.04% while the TOPIX was down 0.39%.
Besides the launch of EVs, Nissan will also enhance its work on battery technologies. It aims to introduce cobalt-free technologies to bring down battery costs by 65% by 2028.
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Solid state batteries by 2028
Further, the company said it plans to launch an EV with its proprietary all-solid-state-batteries (ASSB) by 2028 and ready a pilot plant in Yokohama by 2024.
“Nissan expects ASSB to bring the cost of battery packs down to $75 per kWh by fiscal year 2028 and aims to bring it further down to $65 per kWh to achieve cost parity between EV and gasoline vehicles in the future,” the company said in a statement.