Nissan Receives Certification for Mass Production of LFP Batteries in Japan

Nissan Motor Co., Ltd. has announced that its in-vehicle lithium-iron-phosphate (LFP) battery development and production have been certified by Japan’s Ministry of Economy, Trade and Industry (METI). This certification marks a significant step in Nissan’s efforts to establish a supply chain for storage batteries in line with Japanese government policies.

Nissan plans to incorporate LFP batteries into electric minivehicles starting in fiscal year 2028. This move aims to create more affordable electric vehicles while strengthening Japan's storage battery supply chain. Nissan’s president and CEO, Makoto Uchida, emphasized the importance of government support in their efforts.

The certified production scale is 5 GWh within Japan, with the total business value estimated at approximately 153.3 billion yen (approx. AUD $1.593 billion). Nissan will receive up to 55.7 billion yen (approx. AUD $580 million) in grants as part of this initiative.

Benefits and Drawbacks of LFP Batteries

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Benefits
Lithium-iron-phosphate (LFP) batteries offer several advantages over the more common nickel-manganese-cobalt (NMC) batteries. It is commonly accepted that LFP batteries are  less expensive to produce due to the abundance of raw materials, making them a more cost-effective option for electric vehicles. They also have a longer lifespan, improved safety due to lower risk of overheating, and can handle more charge-discharge cycles, and can be charged to 100%, making them ideal for high-use applications.

Drawbacks
LFP batteries have a lower energy density compared to NMC batteries, meaning they typically provide less range for the same size or weight. This can be a drawback in long-range electric vehicles, where range is a critical factor. Additionally, LFP batteries tend to perform less efficiently in colder climates, which could affect their performance in regions with lower temperatures.