Key facts
- Anduril Industries is in talks to acquire Nissan's Oppama assembly plant in Japan.
- The facility is eyed for the production of military drones.
- Nissan plans to close the plant in 2028.
- The Japanese government is looking to boost its defense manufacturing sector.
- Anduril has previously demonstrated its ability to meet Japan's domestic-content requirements for defense products.
U.S. defense technology company Anduril Industries is reportedly in discussions to acquire Nissan Motor's Oppama assembly plant, located near Tokyo, with the intention of manufacturing military drones in Japan. The potential deal, if finalized, would transform one of Japan's historic car factories into an arms production hub.
Sources familiar with the matter indicated that while no decision has been made, the talks are progressing as Japan's government, under Prime Minister Sanae Takaichi, aims to bolster its defense manufacturing capabilities. This initiative is driven by concerns over regional security, particularly regarding Taiwan, and the need to replenish weapons stocks.
The Oppama plant, established in 1961, has produced approximately 18 million vehicles and was the birthplace of Nissan's Leaf electric vehicle. Nissan plans to close the factory in 2028 as part of a broader strategy to reduce production capacity, offering its 2,400 workers alternative positions within the company.
Anduril, known for its autonomous weapons systems, has expressed interest in retraining the plant's workforce for defense equipment production. The company has previously demonstrated its commitment to Japan's domestic-content requirements by building a drone prototype using only Japanese components. Anduril has also expanded its presence in the region by establishing units in Taiwan and South Korea.
Any deal could face scrutiny regarding Japan's shift away from its postwar pacifist stance and public support for converting civilian industries to defense production. Furthermore, foreign control of defense equipment production in Japan typically involves licensing agreements with domestic companies.
Anduril co-founder Palmer Luckey met with Japanese Defence Minister Shinjiro Koizumi in December, with Koizumi noting Japan's potential to learn from Anduril and develop its defense industry. The company recently secured a contract with the U.S. Air Force for semi-autonomous combat aircraft.