American defense company Anduril is in talks to acquire the Nissan automobile plant near the coast and plans to produce military drones in Japan.

According to knowledgeable sources, the US defense company Anduril is in negotiations with Nissan about acquiring the Oppama assembly plant near Tokyo, in hopes of producing military drones in Japan. The sources added that no final decision has been made yet, but if the deal goes through, this plant, one of the first large car factories in post-war Japan and a symbol of Japan's industrial revival, could be transformed into a defense production base. The Oppama plant has a long history of production and has been a valuable symbol for Nissan since it began operation in 1961. It was where Nissan launched the world's first mass-produced electric car, the Leaf, in 2010 ahead of its competitors. However, Nissan announced the closure of the plant last July as part of a plan to reduce its car production capacity by one million units and relocate about 2400 employees within Japan. One source stated that Anduril has not yet determined how much of the area in the park it would require. The park has research, testing, and port facilities totaling 1.7 million square meters (18.3 million square feet), but Anduril has suggested retraining employees to produce defense equipment. The sources mentioned that Nissan is still in contact with other potential buyers, and Anduril also needs to secure orders from the Japanese military to justify any acquisition. They did not disclose whether Anduril has already submitted an offer for the Oppama plant. Nissan declined to comment on negotiations with Anduril, only stating that a decision has not been made regarding the future ownership of the Oppama plant, which is scheduled to close in 2028. Anduril stated that they do not comment on "market rumors", but confirmed that the company is cooperating with Japanese counterparts and "exploring opportunities to enhance local production capabilities". Last year, Anduril used all Japanese-manufactured components to create a prototype drone named "Kizuna" to prove its ability to meet Japan's requirements for local production. The potential deal between Anduril and Nissan comes at a time when the government led by Prime Minister Kishida seeks to enhance Japan's defense manufacturing capabilities. The Kishida government is expected to unveil a new national security strategy this year, which could accelerate spending on drones, ammunition, and other military equipment, as well as outline specific measures to expand defense production. However, critics may scrutinize the potential deal between Anduril and Nissan. Some are concerned that Japan is drifting away from its post-war pacifist path, and the deal will test public support for the shift from civilian to defense production. Additionally, the deal may raise questions about foreign ownership, as US defense equipment in Japan is typically produced by local companies through licensing agreements. Anduril is not the only company targeting Japan's emerging drone market. Earlier reports indicated that demand growth in the Asia region has attracted Ukrainian companies offering drones previously used in combat against the Russian army. Anduril is known for providing drones and surveillance towers to the US Customs and Border Protection agency (CBP). Over the past year, the company has almost doubled its staff and revenue, reaching $2.2 billion in revenue by 2025. Currently, Anduril has secured multiple contracts, including from the Pentagon, and is significantly expanding its production capacity, including at its Arsenal-1 plant in Ohio, where it plans to mass produce drones and other weapon systems. Two years ago, Anduril was selected for the US Air Force's "Skyborg" program to develop unmanned aircraft systems that can cooperate with manned combat aircraft, beating out traditional defense contractors like Boeing and Lockheed Martin. In March of this year, Anduril won a significant government contract for a US Army project potentially worth up to $20 billion over ten years. Under the agreement, the company will integrate its AI-driven Lattice command and control software and related hardware into an "operationally deployable" combat system. Earlier this month, the US Air Force awarded contracts to Anduril and General Atomics to build the first semi-autonomous combat drone squadron for the US Air Force, which will operate in conjunction with manned fighter jets. In recent years, companies like Palantir and Anduril, known as "new defense contractors," have been disrupting the dominance of traditional defense giants like Raytheon and Lockheed Martin in US military contracts. As global political tensions rise, defense spending continues to increase, and more capital is flowing into defense technology. Anduril's rapid growth highlights a significant shift in the attitude of the venture capital industry towards the defense sector. In May of this year, Anduril announced a $5 billion Series H funding round, valuing the company at $61 billion. This is a significant increase from just over $30 billion in its previous funding round in June of last year. It is worth mentioning that Anduril has a close connection with another prominent US defense company, Palantir. The venture capital fund "Founders Fund" established by Palantir founder Peter Thiel was the seed investor in Anduril, participating in subsequent funding rounds as well.