Nissan to spend $17.6 billion over 5 years on electricity payment – Reuters


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© Reuters. FILE PHOTO: The Nissan Motor logo is displayed during a press preview of the all-new Ariya SUV at the Nissan stand in Yokohama, south of Tokyo, Japan, July 14, 2020. REUTERS/Issa Kato

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Written by Tim Kelly

TOKYO (Reuters) – Nissan (OTC: Motor Co.) said it will spend 2 trillion yen ($17.59 billion) over the next five years to speed up electrification of vehicles with the aim of catching up with competitors in one of the auto industry’s fastest growing areas. .

This is the first time that the Japanese No. 3 automaker, one of the world’s first electric vehicle (EV) makers with the Leaf in more than a decade, has revealed a comprehensive electrification plan.

Nissan will spend twice as much in the past 10 years on an electric vehicle market share as its competitors, including Toyota Motor (NYSE:) Corp and new entrants such as Tesla (NASDAQ 🙂 Inc, are moving forward with their electric vehicle plans.

Nissan said on Monday it will roll out 23 electric vehicles by 2030, including 15 electric cars, and wants to cut costs for lithium-ion batteries by 65% ​​within eight years. It also plans to introduce all potentially game-changing solid-state batteries by March 2029.

Chief Executive Officer Makoto Uchida said these commitments will make electric vehicles accessible to more drivers.

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

Some analysts were unimpressed by Nissan’s plan, noting that it was already behind its rivals in the electric game.

Masayuki Otani, chief analyst at Securities Japan Ltd., said auto stocks were dropping on Monday due to market concerns about a new variant of the coronavirus and the potential impact of that.

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“Nissan’s long-term vision comes at a time when the market may not accept it. It can be said that it represents a significant increase in investment, and it is feeling cautious,” he said.

Nissan shares fell as much as 5.1 percent on Monday, underperforming its main rivals. It fell 3.8% in afternoon trading.

Chart: Nissan and other automakers’ stocks https://fingfx.thomsonreuters.com/gfx/mkt/gdvzydxgjpw/image-1638151943316.png

Although still a small portion of vehicles on the road, global electric vehicle registrations in 2020 grew 41% even as the overall auto market shrank by about a sixth, according to the International Energy Agency (IEA).

At the United Nations Climate Summit in Glasgow this month, major automakers including General Motors (NYSE: NYSE) and Ford Motor (NYSE: Co), signed a declaration committing them to phase out fossil fuel vehicles by 2040.

However, Nissan did not commit to abandoning gasoline cars. On Monday, it said half of its hybrid vehicles will be electric by 2030, including electric vehicles and plug-in hybrids.

As it prepares to compete with growing demand for electric vehicles, Nissan in July pledged $1.4 billion with its Chinese partner Envision AESC to build a giant battery plant in Britain that would power 100,000 cars a year including a new crossover model.

Competitors, including Toyota, which also refused to sign the Glasgow pledge, are also ramping up battery production.

The world’s largest automaker by volume plans to have 15 battery electric vehicles (BEV) models globally by 2025 and will spend $13.5 billion by 2030 to develop cheaper, more powerful electric batteries and its supply system.

Toyota said it aims to introduce solid state batteries by mid-2020.

These power packs are attractive to automakers because they are more energy-dense and less likely to catch fire than liquid lithium-ion power packs. However, it is prone to cracking and is currently more expensive to produce.

Nissan said its goal is to bring the cost of solid-state batteries down to $75 per kilowatt-hour in 2028 and down to $65 per kilowatt-hour in the future to make them competitive with gasoline vehicles.

(dollar = 113.7000 yen)



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