Nissan (NSANY) to Produce Next-Generation EV Batteries by 2029

Nissan Motor Co., Ltd. NSANY plans to produce electric vehicles (EVs) powered by next-generation batteries at scale by early 2029. In a bid to improve efficiency and reduce costs on future models, the automaker will use huge casting machines.

The Japan-based automaker is trying to catch up with rivals like Tesla and BYD Co. in the emerging all-electric auto sector with batteries that are more efficient, cheaper, safer and take less time to charge than the existing lithium-ion batteries.

The solid-state batteries replace corrosive liquid found in traditional batteries with solid metal. The leading automakers are trying to develop versions of solid-state batteries that can be produced at scale.

Volkswagen and Toyota are also working on the solid-state EV batteries. Toyota plans to bring the batteries to the market by 2027-2028.

Nissan will first perform a prototype test on solid-state batteries and then produce them at an unfinished pilot plant in Yokohama. The automaker plans to commence the production of batteries at the site starting March 2025. To ramp up the production to 100 megawatt hours per year, it will deploy 100 workers per shift from the financial year starting April 2028.

To produce the rear floor of EVs, NSANY will utilize heavy-force machines. The process will reduce the manufacturing cost and weight of the components by 10% and 20%, respectively.

Per Hideyuki Sakamoto, executive vice president for manufacturing and supply chain management of Nissan, after experimenting with different things, the company decided to use a 6,000 tonnes gigacasting machine to manufacture the car’s rear body structure using aluminium casting.

Over the next three years, Nissan aims to launch 30 new models. Out of those models, 16 will be electrified, including eight all-battery powered vehicles and four plug-in hybrids. The automaker strives to reduce the cost of next-generation vehicles by 30% to bring them into the range of internal combustion engine models by 2030.

The company is also contemplating a strategic partnership with Honda to manufacture essential components for EVs and artificial intelligence in software platforms.

Zacks Rank & Key Picks

NSANY currently carries a Zacks Rank #4 (Sell).

Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Toyota Motor Corporation TM and Volvo VLVLY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 60 days.

The Zacks Consensus Estimate for VLVLY’s 2024 earnings suggests year-over-year growth of 1.3%. The EPS estimates for 2024 and 2025 have improved 14 cents and 20 cents, respectively, in the past 30 days.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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