Nissan to speculate $17.6 billion to ramp up electrical car providing

A Nissan electric concept car will be on display in the company’s showroom in Yokohama, Japan on November 29, 2021.

KAZUHIRO NOGI | AFP | Getty Images

Japanese automobile giant Nissan will invest 2 trillion yen (approximately $ 17.6 billion) over the next five years to accelerate the electrification of its product line.

Nissan announced on Monday that it would launch 23 new electrified models by 2030, 15 of which will be fully electric.

By the end of the decade, the company is aiming for a 50% electrification mix for its Nissan and Infiniti brands.

On the battery front, the company plans to launch all-solid-state batteries, or ASSB for short, by 2028. A pilot plant for ASSB in Yokohama, Japan, will be completed “in fiscal year 2024”, called Nissan.

In a speech outlining the plans, Nissan chief Makoto Uchida said his company is focused on ASSB’s internal development.

“This enables us to double the energy density compared to current lithium-ion batteries,” he said. “With smaller and thinner batteries, we can offer a flexible layout with more dynamic performance and expand it to larger segments like pickup trucks.”

Nissan is one of several well-known companies pursuing an electrification strategy. In March, Volvo Cars announced a “Full Electric Car Company” by 2030. Elsewhere, BMW Group By 2030, at least 50% of deliveries should be fully electric vehicles.

It comes at a time when major economies around the world are trying to reduce the environmental footprint of transport.

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The UK, for example, wants to stop sales of new diesel and gasoline cars and vans by 2030. From 2035, all new cars and vans will have to have zero tailpipe emissions.

Elsewhere, the European Commission, the executive branch of the EU, aims to reduce CO2 emissions from cars and vans by 100% by 2035.

Earlier this month, signatories of a statement at the COP26 climate summit said they will “work in leading markets by 2040 and no later than 2035 to ensure that all sales of new cars and vans worldwide are emission-free”.

While the US, China and the automakers including Volkswagen, Toyota and Nissan were absent from the statement, signatories included the governments of the United Kingdom, India and Canada, and automobile companies such as ford, General Motors and Volvo cars.

Speaking to CNBC’s Steve Sedgwick on Monday morning, Nissan’s Uchida said his company must be “equipped and ready.” [for] how the market for … electrification will develop. “

While charging, Uchida emphasized the importance of collaboration. “We don’t just concentrate [at] … Nissan but also in the alliance [on] how we can further … contribute to building the infrastructure with regard to the charging stations. “

Renault-Nissan-Mitsubishi is an automotive alliance founded in 1999. Mitsubishi joined the strategic partnership in 2016.