Nissan says it will bring EV powertrain costs down by 30%, here’s what that entails
Nissan is doubling down on its new efforts to boost electric vehicle production. The automaker says under its new EV powertrain approach, development and manufacturing costs will be reduced by 30% by 2026.
Despite Nissan’s early lead in the pure battery electric vehicle market with the release of the LEAF in 2011, the Japanese automaker is now falling behind with automakers racing to develop EVs.
The Nissan LEAF was, at its prime, the best-selling all-electric vehicle in Europe in 2018 after an impressive run.
With a slew of new competitors entering the market since, the LEAF slipped out of the top 10 this past year as Tesla (Model Y and Model 3), Volkswagen (ID3 and ID4), Hyundai and Kia (Kona electric and Niro), and other models from Fiat, Skoda, Dacia, and Peugeot took market share.
Nissan began selling its second electric vehicle, the 2023 Ariya electric SUV, but it took over a decade since the LEAF was introduced.
The Ariya is the Japanese automaker’s first electric SUV with up to 304 miles range and an MSRP of $43,190 (for the base Engage FWD trim).
Recognizing the urgency, Nissan announced plans last month to accelerate its EV strategy “Ambition 2030,” initially introduced in 2021. The updated strategy includes releasing 19 new EVs by 2030, up from the 15 previously expected, and higher electric sales in key markets.
Nissan reveals “X-in-1” to reduce EV powertrain costs
To maximize its strategy and remain competitive going forward, Nissan unveiled a new EV powertrain approach Thursday that will result in a 30% reduction in development and manufacturing costs by 2026, according to the automaker.
Nissan says it has developed a 3-in-1 powertrain prototype consisting of the electric motor, inverter, and reducer, which it plans to use for its EVs.
By sharing and modularizing the prototype with its e-POWER hybrid vehicles, Nissan will be able to produce EVs and hybrids on the same line, which the automaker says will reduce manufacturing and development costs by 30% by 2026.
More importantly, Nissan is reducing the size and weight of the motor to improve performance and diminish noise and vibration. Interestingly, Nissan says it will develop a new electric motor that will trim its heavy rare earth element use to 1% or less of magnet weight.
Electrek’s Take
Although a 30% reduction in powertrain development and manufacturing costs may seem like a lot, it will likely only result in a minimal price decrease for Nissan’s EVs.
That being said, streamlining production is vital in reducing costs and expanding margins. Tesla has been touting this for years, and that’s why it’s achieving some of the industry’s highest margins.
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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