Nissan Begins Construction of U.S. Battery Plant

Smyrna, Tennessee, May 26 (Jiji Press)--Nissan Motor Co. <7201> on
Wednesday started construction of a new plant here to produce lithium-ion
batteries for the Japanese automaker's Leaf electric vehicle.
The 1.7-billion-dollar factory, set to begin operations in 2012,
will be established within the premises of Nissan's Smyrna vehicle assembly
plant, where output of the Leaf will begin in the same year.
With the Smyrna facility, Nissan will have battery plants in the
three major markets of North America, Europe and Japan, getting ready to
sell its electric vehicles worldwide, industry watchers said.
Nissan started producing batteries in Japan last year. The company
also plans to make them in Britain, France and Portugal for use by not only
Nissan itself but its French partner, Renault SA.
The annual output capacity of the Smyrna battery plant will be
200,000 units, enabling production of 150,000 units of the Leaf a year, the
company said.
Nissan plans to launch the electric vehicle in Japan, Europe and
the United States by the end of the year and in other global markets later.
"Production of Nissan Leaf and lithium-ion batteries in Smyrna
brings the United States closer to its goal of energy independence, creates
green jobs and helps sustain American manufacturing," President Carlos Ghosn
said in a statement.
The U.S. government has agreed to provide 1.4 billion dollars in
low-interest loans to help Nissan manufacture electric vehicles.
Nissan says its Leaf and battery production will create up to 1,300
jobs here.