U.S. defense firm Anduril Industries is in talks to acquire Nissan Motor¡¯s Oppama assembly plant near Tokyo as the maker of autonomous weapons looks to build military drones in Japan, according to three sources familiar with the matter.

While they say no decision has been made, any deal could transform one of Japan¡¯s first large-scale postwar car factories, long a symbol of its industrial revival, into ?an arms-making hub.

The talks over Oppama, which is being?reporting for the first time, come as Prime Minister Sanae Takaichi¡¯s government seeks to expand defense manufacturing ?amid growing ?concern that a Taiwan Strait crisis could draw in Japan and run down weapons stocks.

China, which views democratically governed Taiwan ?as part of its territory, has not ruled out using force to bring it under control.

At the same time, any deal between Anduril and Nissan could draw scrutiny from critics wary of Japan¡¯s retreat from postwar pacifism and test public support for converting civilian industry to defense production.

It could also raise questions ?about foreign control because U.S. defense equipment produced in Japan is typically built under license by domestic companies.

Takaichi¡¯s government is expected to unveil this year a new national security ?strategy that could accelerate spending on drones, munitions and other military equipment while mapping out steps to expand arms production.

For now, Nissan is talking with other potential buyers and Anduril will still need to secure orders from Japan¡¯s military to justify any purchase, said the ?sources, who sought anonymity as they were not authorized to ?speak to the media.

They did not say if Anduril had submitted a price for the Oppama site.

Nissan declined to comment whether it was in talks with Anduril, adding that no decision had been made on future ownership ?of the Oppama plant it plans ?to close in 2028.

Anduril said it would not comment on ¡°market speculation,¡°?although it said it was ?working with Japan and ¡°exploring opportunities to strengthen local production.¡±

The company is not alone in eyeing Japan¡¯s emerging drone market, however. Growing demand ?in Asia is ?also attracting Ukrainian companies offering drones battle-tested against Russian forces.

Oppama, which opened in 1961, is located about an hour by train south of Tokyo, and has produced about 18 million vehicles. It was also the birthplace of the Leaf, Nissan¡¯s first mass-market electric vehicle, in 2010.

Last year, Nissan said it would shutter the factory in its plans to trim production capacity by 1 million vehicles ?and offer its 2,400 workers jobs elsewhere in Japan.

Anduril has yet to decide how much of the site it would need, where research, testing and port facilities sprawl over 1.7 million square meters, but has...