Reuters: US defence firm eyes Nissan plant for drone production

US defence technology company Anduril Industries is in discussions to acquire Nissan Motor's Oppama assembly plant near Tokyo as part of plans to establish military drone production in Japan, Reuters reports.

While no final decision has been made, any agreement could transform one of Japan's most historic postwar automobile factories into a major defence manufacturing hub.

The reported negotiations come as the government of Prime Minister Sanae Takaichi seeks to expand the country's defence-industrial base amid growing concerns that a potential crisis in the Taiwan Strait could draw Japan into a regional conflict and deplete military stockpiles.

China, which regards Taiwan as part of its territory, has repeatedly stated that it has not ruled out the use of force to bring the self-governed island under its control.

Sources told Reuters that Anduril's interest in the Oppama facility coincides with Tokyo's broader efforts to increase domestic production of drones, munitions and other military equipment. However, any potential transaction could face public scrutiny from critics concerned about Japan's gradual departure from its postwar pacifist principles and the conversion of civilian industrial assets for defence purposes.

Questions could also arise regarding foreign involvement in Japan's defence sector, as US military equipment produced in the country is typically manufactured under licence by domestic companies.

According to the sources, Nissan is also in talks with other prospective buyers, while Anduril would need to secure contracts from Japan's military before a purchase could be fully justified. The sources declined to disclose whether the company had submitted a financial offer for the site.

Nissan declined to comment on whether discussions with Anduril were taking place, stating only that no decision had been made regarding the future ownership of the Oppama plant, which is scheduled to cease operations in 2028.

Anduril likewise declined to comment on what it described as "market speculation," but said it was working closely with Japan and "exploring opportunities to strengthen local production."

The Oppama facility, which opened in 1961 and has produced approximately 18 million vehicles, occupies around 1.7 million square metres and includes research, testing and port facilities. It was also the birthplace of the Nissan Leaf, the company's first mass-market electric vehicle, launched in 2010.

One source said Anduril has proposed retraining workers at the site to manufacture defence equipment. Nissan previously announced plans to close the plant as part of a restructuring programme aimed at reducing production capacity by one million vehicles annually, while offering alternative positions to its approximately 2,400 employees elsewhere in Japan.

The factory's strategic location has also attracted attention. Situated near the Yokosuka naval base—the headquarters of Japan's Maritime Self-Defense Force and home to the US Navy's only forward-deployed aircraft carrier strike group—the site occupies a significant position within Japan's defence infrastructure.

Japanese Defence Minister Shinjiro Koizumi met Anduril founder Palmer Luckey during a visit to Tokyo in December for the opening of the company's Japanese subsidiary.

Japan has "much to learn from Anduril," Koizumi later wrote on X, adding that cooperation with the company could contribute to the development of the country's defence industry.

Founded in 2017 by Palmer Luckey, inventor of the Oculus Rift virtual reality headset, Anduril has positioned itself as a disruptor in the defence industry, arguing that it can produce autonomous weapons systems more rapidly and at lower cost than traditional contractors.

By Vafa Guliyeva