Nissan Leaf battery scheme could impact EV imports

Nissan is reportedly evaluating adopting an electric vehicle subscription scheme in Japan that could have some ramifications for markets like New Zealand in the long term.

According to a report published by the Financial Times, Nissan is looking into renting out its fully electric models to customers, as an alternative to letting them purchase vehicles outright.

The scheme is likely to centre around volume nameplates like the Leaf, and could also impact the brand’s plug-in eNV200 van.

It’s reported that the move is designed to reduce the amount of rare metals (such as lithium) leaving Japan, thereby allowing Nissan to have greater control over how those materials are recycled once vehicles enter the end-of-life process.

“One challenge is that the Leaf , including its batteries, are exported abroad as used cars and there are fewer vehicles left in Japan,” Yutaka Horie, president of 4R Energy, a Nissan affiliate, told Financial Times.

“We want people to understand the value of used batteries and we want these cars to remain in Japan.”

Nissan is the latest manufacturer to have shown an interest in establishing a circular system for its electric vehicle products, where the materials needed for new vehicles can instead be in-part sourced from used cars, instead of manufacturing relying solely on newly mined materials.

While this underlines an environmental benefit, it could also represent a financial benefit amid the currently spiralling prices of lithium.

The Leaf is New Zealand’s most popular used electric vehicle import. It often features in the top half of the national monthly used vehicle registration list issued each month by the Waka Kotahi NZ Transport Agency. In July, it was the country’s fourth most popular import.

The Financial Times reports that Russia and New Zealand combined accounted for 80% of Japan’s second-hand electric vehicle exports in the first six months of 2022. A total of most of 7545 used EVs were exported from Japan in this period, with the majority being Leafs.

While the Leaf has always been popular here, demand for models has exploded in recent times thanks to the arrival of the Clean Car Discount rebate.

As it stands, Nissan Leafs (and other EVs sold locally) that reach end-of-life status in New Zealand often have their batteries recycled, with some converting them into solar power storage systems.

The move could further complicate the difficulties that local dealerships have in supplying electric vehicles from Japan.

Most that have spoken to EVs & Beyond’s sister publication AutoTalk have said that they cannot supply Nissan Leafs from Japan fast enough to meet demand, while some have lamented the lack of alternative plug-ins available from Japan.