To take on Chinese rivals, Nissan to lower EV prices for emerging markets with cheaper LFP batteries
Sanjay · Jan 31, 2024 10:24 AM
0
0
The Nissan Sakura kei-EV is proving popular in Japan
Nissan Motor is gearing up to produce lithium-ion batteries utilising more cost-effective materials, with intentions to integrate them into electric vehicles (EVs) targeted at emerging markets by 2026, according to insights obtained by Nikkei.
The Japanese automaker is charting a course to manufacture lithium-ion phosphate (LFP) batteries, a variant roughly 20% to 30% less expensive to produce compared to traditional lithium-ion batteries that incorporate nickel, cobalt, and manganese (NCM).
The standard Li-Ion battery of the Nissan Sakura
This strategic shift comes with a tradeoff, as LFP batteries possess lower energy density than NCM counterparts, translating to a reduction in driving distance per charge by approximately 20% to 30%.
At present, Nissan is actively developing LFP batteries primarily at its research and development center in Atsugi city, Japan. The possibility of in-house production at the Yokohama plant and other facilities is being contemplated.
These LFP batteries are anticipated to be deployed in EVs by 2026 or later. While Nissan collaborates with various battery manufacturers, the company is also exploring potential procurement options outside its corporate group.
The International Energy Agency reported that in 2022, 27% of new EVs incorporated LFP batteries, marking a substantial increase from 3% three years earlier. Notably, 95% of LFP batteries produced for EVs are utilised in Chinese-made vehicles, with electric vehicles equipped with LFP batteries surpassing those using NCM batteries.
BYD commands over 50% market share in LFP batteries in China. Leveraging these batteries (among other reasons), BYD has successfully lowered EV prices, resulting in surpassing Tesla's sales in the fourth quarter of 2023.
Looking ahead, Nissan aims to introduce 27 electrified models by 2030, including 19 EVs. The company has set its sights on commercialising solid-state batteries by fiscal 2028 too.
With humble beginnings collecting diecast models and spending hours virtually tuning dream cars on the computer, his love of cars has delightfully transformed into a career. Sanjay enjoys how the same passion for cars transcends boundaries and brings people together.
