Nissan Motor said Japan’s Ministry of Economy, Trade and Industry (METI) had certified its development and mass production lithium iron phosphate (LFP) batteries for use in electric vehicles (EVs), bringing mass production one step closer.

The automaker said it planned to establish a supply chain and production base for LFP batteries in Japan, for use as energy storage systems (ESS) as well as to power EVs from 2028.

Nissan president and CEO Makoto Uchida said in a statement: “We will adopt LFP batteries to meet the diverse needs of customers and to provide more affordable electric vehicles. The batteries, to be developed and mass produced in Japan, will be installed in electric minivehicles starting in fiscal year 2028. We aim to establish a base for LFP batteries in Japan by making the most of the government support approved by METI."

The automaker currently uses nickel cobalt manganese (NCM) lithium ion batteries in its EVs, but plans to switch to cheaper materials such as lithium iron phosphate to reduce costs particularly for smaller models and in emerging markets.

LFP batteries are up to 30% cheaper to produce than lithium ion batteries but have a more limited range.