Nissan cancels battery plant investment in Portugal image

Nissan Motor Company has decided to suspend its Portuguese plant project, which was due to start making EV batteries in late 2012.

Company spokesman Antonio Pereira-Joaquim said Nissan thinks that its four existing electric car plants, including two located in Europe, can handle its global battery production plan.

“The Portuguese project is suspended without a date for reactivation. We are going to study alternatives for the use of the building that has already been built. We’ve analyzed our battery output capacity and our four plants basically can make what had been expected to be produced by five plants. The Portuguese plant is the only one that is not adjacent to a Nissan car plant so it was suspended,” the spokesman was quoted as saying by Reuters.

Nissan denied the decision had anything to do with the crisis Portugal is experiencing as it has to drastically cut spending after receiving a €78 billion bailout. The projected plant in Aveiro would have employed 200 people and was designed to be one of the main battery supply bases for Nissan and Renault’s Evs. The plant’s projected annual output was 50,000 batteries by 2015. Nissan’s total investment in the project was estimated at €156 million ($206 million).