Nissan's big EV play comes with 23 new models

TOKYO — After falling behind a host of upstart rivals from China to Silicon Valley, electric vehicle pioneer Nissan Motor Co. is gearing up to get back into the EV race.

But like its Japanese rivals, Nissan is still approaching the new technology with a bit of caution.

Nissan's new vision to "democratize" electrification and "take the lead" in the rapidly expanding segment comes with a dose of reality in comparison to its early EV ambitions a decade ago when it launched the Leaf. The new plan will take a lot more cash, and the transition will happen much more gradually.

That strategy puts Nissan in the camp of competitor carmakers, including Toyota and Subaru, which are pursuing a balanced portfolio of EVs and hybrids instead of going all-in on a pure-electric tomorrow.

Under a new long-term road map unveiled Nov. 29 by CEO Makoto Uchida, Nissan will invest $17.7 billion in the next five years in electrification technologies, and by 2030, roll out 23 new electrified vehicles. By that year, it wants half its global sales from pure EVs and hybrids.

The investment amount is an acknowledgment of the huge sums that Nissan chose not to plow into EV technologies over the years as its competitors usurped Nissan's early lead. It will now spend twice as much in the next five years as it did over the past 10.

Meanwhile, the EV volume target steers away from bold unit-sales figures and lands more in line with its Japanese peers. While Honda Motor Co. stands at one extreme, with plans to completely drop internal combustion by 2040, Toyota maintains that other non-EV technologies must still be considered, and says it will sell 8 million electrified vehicles in 2030, of which about 6 million will be engine-equipped hybrids.

In some ways, Nissan learned its lesson the hard way.

In 2011, the Japanese carmaker — then under the leadership of Carlos Ghosn — thought it could sell 1.5 million EVs cumulatively by 2016, together with its alliance partner Renault. The alliance missed that sales goal by 1 million vehicles.

The new plan under Uchida, who took the helm two years ago this month, is more grounded.

"While democratizing EVs, we have always aligned with the pace of the markets and set realistic targets," COO Ashwani Gupta said. "This ambition of ours is grounded and progressive."

Globally, Nissan is aiming for an electrification mix of 50 percent across the Nissan and Infiniti brands by the fiscal year ending March 31, 2031. On tap are 23 new electrified vehicles, including 15 pure electrics. Nissan will also dial up deployment of its e-Power hybrid systems.

In the next five years, the company plans to introduce 20 EV or e-Power models.

By the fiscal year ending March 31, 2027, Nissan wants electrified vehicles — including hybrids — to account for more than 75 percent of its sales in Europe, more than 55 percent in Japan and more than 40 percent in China. But in its critical U.S. market, Nissan sees a longer ramp-up, with pure EVs representing just 40 percent of its sales by the fiscal year ending March 31, 2031.

Nissan's quickening pace comes as the industry plows hundreds of billions of dollars into electrification amid tightening regulations, concern about emissions and shifting consumer tastes. Nissan's continued backing of hybrid technology puts it in a camp with Toyota and others that are betting on a slower embrace of all-electric mobility.

"The role of companies to address societal needs is increasingly heightened," Uchida said. "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."

Under the plan, Nissan wants to launch solid-state batteries by the fiscal year ending March 31, 2029, with a pilot plant in Yokohama ready as early as the fiscal year ending March 31, 2025.

Uchida said Nissan is confident enough in its battery plans to set a price target, which he said sets Nissan apart from rivals.

Nissan envisions that by the fiscal year ending March 2029, it will be able to bring the cost of solid-state batteries down to $75 per kilowatt-hour — lower than the $100 threshold many are now seeking. It sees further reductions to around $65, which Nissan says will allow price parity between EVs and gasoline vehicles.

The automaker didn't give a time frame for that target.

Nissan's billions of dollars of investment will also fund the expansion of global battery production capacity to 52 gigawatt-hours by the fiscal year ended March 2027, and then to 130 gigawatt-hours by the end of the decade. That will be achieved with partners, it said, but it didn't mention alliance teammates Renault or Mitsubishi by name in the news release.

"With the introduction of breakthrough ASSB (all-solid-state batteries), Nissan will be able to expand its EV offerings across segments and offer more dynamic performance," Nissan said.

Nissan will also step up its localization of electrification manufacturing and sourcing, based on the EV36Zero electric vehicle hub concept it created in the U.K. The company will build similar EV manufacturing hubs in the U.S. and China. Nissan will amplify that with new battery refurbishing facilities in the U.S. by March 2025 and in Europe by March 2023.

To achieve this growth, Nissan plans to hire 3,000 employees globally in advanced fields.