Anduril Explores Acquisition of Nissan Plant as Japan Expands Defense Manufacturing

BY COMFORT OGBONNA

U.S. defense technology company Anduril Industries is exploring the possibility of acquiring Nissan Motor’s historic Oppama assembly plant near Tokyo, a move that could mark a significant shift in Japan’s industrial landscape and strengthen the country’s growing defense manufacturing capabilities.

Discussions between the two companies remain ongoing, and no final decision has been made. However, a successful deal would transform one of Japan’s most iconic automobile factories into a facility focused on producing advanced military drones and other defense-related equipment.

The potential acquisition comes at a time when Japan is reassessing its security priorities amid rising tensions in East Asia. Concerns about regional stability, particularly the possibility of a conflict involving Taiwan, have prompted Japanese policymakers to increase defense spending and expand domestic production of military equipment. Officials have warned that a major regional crisis could rapidly deplete weapons inventories, highlighting the need for a stronger and more resilient defense industrial base.

The Oppama plant has long been a symbol of Japan’s postwar economic success. Opened in 1961, the facility played a major role in the country’s automotive industry and has produced approximately 18 million vehicles over the past six decades. It was also the birthplace of Nissan’s Leaf electric vehicle, one of the world’s first mass-market electric cars, which entered production there in 2010.

Last year, Nissan announced plans to close the factory by 2028 as part of a broader restructuring effort aimed at reducing global production capacity. The automaker said it would offer alternative employment opportunities within Japan to the plant’s approximately 2,400 workers.

For Anduril, the site offers several strategic advantages. The sprawling facility covers roughly 1.7 million square meters and includes research centers, testing grounds, manufacturing infrastructure, and port access. According to people familiar with the discussions, Anduril has indicated a willingness to retrain existing workers to support the production of defense systems, helping preserve jobs while repurposing the facility for a new industry.

The location is also highly attractive from a military standpoint. The plant sits near Yokosuka Naval Base, home to Japan’s Maritime Self-Defense Force headquarters and the U.S. Navy’s only permanently forward-deployed aircraft carrier strike group. Its proximity to key military installations could simplify logistics and support future defense manufacturing operations.

Despite the potential benefits, the proposal may face political and public scrutiny. Japan’s postwar identity has long been shaped by pacifist principles, and some critics are likely to question the conversion of a civilian automotive factory into a defense production center. Others may raise concerns about foreign ownership because military equipment produced in Japan is traditionally manufactured by domestic companies under licensing agreements rather than by foreign defense contractors operating directly within the country.

The Japanese government is expected to unveil an updated national security strategy later this year that could further accelerate spending on drones, missiles, ammunition, and other defense technologies. The strategy is also expected to outline measures aimed at expanding domestic arms production and strengthening supply chains.

Any acquisition would likely depend on Anduril securing future contracts from Japan’s military. Without sufficient demand from defense authorities, the company may find it difficult to justify the investment required to purchase and convert the site. Nissan is also reportedly considering interest from other potential buyers as it evaluates options for the factory’s future.

Anduril has declined to comment directly on the discussions but has stated that it continues to work closely with Japan and is exploring opportunities to expand local production capabilities. The company has increasingly focused on establishing a presence in the Japanese market, which is becoming one of Asia’s fastest-growing defense sectors.

Defense Minister Shinjiro Koizumi has previously expressed support for cooperation with Anduril. During a visit to Tokyo by company founder Palmer Luckey last year, Koizumi said Japan could benefit from the company’s technological expertise and innovative approach to defense manufacturing. He later pointed to Anduril’s partnership with General Motors in the United States as an example of how defense firms and automakers can successfully collaborate.

Founded in 2017 by Luckey, who is best known for creating the Oculus Rift virtual reality headset, Anduril has rapidly emerged as a major player in the defense industry. The company specializes in autonomous systems, artificial intelligence, and advanced surveillance technologies, claiming it can develop military hardware more efficiently and at lower cost than traditional defense contractors.

Its growing influence was highlighted this month when the U.S. Air Force selected Anduril and General Atomics to develop a new generation of semi-autonomous combat aircraft designed to operate alongside piloted fighter jets.

The company has already demonstrated its commitment to Japan’s defense market. Last year, Anduril unveiled a prototype drone called Kizuna, meaning “bond” in Japanese, which was built entirely using components sourced from Japan. The project was intended to showcase the company’s ability to meet local content requirements and strengthen ties with Japanese industry.

If the Oppama acquisition proceeds, it could become one of the most significant examples of a traditional manufacturing facility being transformed to support modern defense production. The move would not only reshape the future of a historic automotive plant but also reflect Japan’s broader efforts to adapt its industrial base to a rapidly changing security environment.