Nissan Receives $1.4B Loan to Produce the LEAF in NA

The US Department of Energy announced yesterday it has approved a $1.4 billion loan to Nissan North America to allow the carmaker to produce the Nissan LEAF vehicles and the lithium-ion battery packs to power them at its Smyrna, Tenn., manufacturing plant.

The loan was issued as part of the Advanced Technology Vehicles Manufacturing Loan Program, which was designed to accelerate the development of vehicles and technologies that will create cleaner means of transportation in the United States.

"Nissan applauds the Department of Energy's support of the development of innovative, advanced vehicle technologies and the creation of clean energy jobs," Scott Becker, senior vice president Administration and Finance, Nissan North America, said in a release. "Nissan is committed to zero-emission mobility. This loan, which will bring production of the Nissan LEAF to Tennessee, is a significant step in sustaining American jobs and American manufacturing."

The direct consequence of this agreement will lead to the creation of up to 1,300 jobs when the plants are operating at full capacity. Modification of the Smyrna manufacturing plant, which will begin later this year, includes the build of a new battery plant and changes in the existing structure for electric-vehicle assembly.

As soon as the plant will become fully operational, it will be capable of producing 150,000 Nissan LEAF electric cars per year, and will have an annual capacity of 200,000 batteries.

The Nissan LEAF is scheduled for launch in the US, Japan and Europe in December 2010, so the carmaker is currently preparing for market launch by closing deals with the State of Tennessee, the State of Oregon, Sonoma County and San Diego in California, Phoenix and Tucson, Ariz., Washington D.C., Seattle, Raleigh, N.C., and with Houston-based Reliant Energy.