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Nissan Awaits First North American Plant for Production of Anticipated Electric Car

Nissan North America Incorporated is under way with plans to produce an electric car model known as the Nissan LEAF at its automotive assembly plant in Smyrna, Tennessee. ...

Released Wednesday, May 25, 2011

Nissan Awaits First North American Plant for Production of Anticipated Electric Car

Researched by Industrial Info Resources (Sugar Land, Texas)--Nissan North America Incorporated is under way with plans to produce an electric car model known as the Nissan LEAF ("a Leading, Environmentally friendly, Affordable, Family car") at its automotive assembly plant in Smyrna, Tennessee.

Electric cars are automobiles propelled by electric motors that use electrical energy stored in batteries or other energy storage devices. As of early 2011, series production models available in some countries included the Tesla Roadster, REVAi, Buddy, Mitsubishi I MiEV, Th!nk City, and Nissan Leaf.

The Nissan LEAF, which is manufactured by Nissan, was first produced in Japan and introduced in the U.S. in December 2010, in Ireland in February 2011, and in the U.K. in March of this year. The LEAF is a zero-emission, five-door, mid-size hatchback electric car, which is powered by 24 kilowatt-hours (kWh) of laminated, compact lithium-ion batteries, which generate 90 kilowatts (kW) of power. The LEAF's range is about 73 miles, with an energy consumption of 34 kWh per 100 miles, and a combined fuel economy rated at 99 miles per gallon.

The Nissan LEAF, which is assembled in Japan, produces no tailpipe pollution or greenhouse gas emissions at the point of operation and reduces dependency on petroleum, thus making it more environmentally friendly.

The LEAF's retail price in the U.S. is estimated to be $32,780. The price includes the price of the battery package. Most of the running cost of an electric vehicle can be attributed to the maintenance and replacement of the battery pack, because it has only five or so moving parts in its engine, compared with a gasoline car that has hundreds of parts. Electric cars have expensive batteries that must be replaced, but incur very low maintenance costs. A drawback to the electric vehicle is that there aren't that many, if any, charging stations established in the U.S. to replace the batteries that are used to operate the vehicle.

Nissan plans to move manufacturing of the Xterra sport utility vehicle and Frontier pickup truck models from the Smyrna plant to a plant in Canton, Mississippi, to make room at the Smyrna plant for production of the LEAF. The newly created space will allow the company the extra capacity to make the new Infiniti JX luxury crossover, the Nissan LEAF, and the next-generation Nissan Rogue. Adjacent to the existing plant is a new lithium-ion battery manufacturing plant, which is under construction. The changes are expected to increase production 69% to 85% by 2015. Commercial production in the U.S. is expected to begin in late 2012.

The Smyrna plant is being modified with a $1.4 billion loan from the U.S. Department of Energy to allow the manufacturing plant to produce the LEAF and its advanced batteries. The retooled plant is expected to create 1,300 jobs. Phase I construction of the 450,000-square-foot lithium-ion battery manufacturing plant began in September 2010. Completion is slated for the end of the year, with process controls expected to be installed by the end of this year or early 2012, despite the parts shortage due to the Japanese tsunami on March 11. Phase I will allow Nissan to produce state-of-the-art lithium-ion batteries that will have a capacity to produce 150,000 LEAF cars per year and 200,000 lithium-ion battery packs per year. Production is anticipated to begin in 2012. The new lithium packs are to be used in future Nissan hybrid cars. Construction on Phase II of the lithium-ion battery manufacturing plant, which will add an additional 300,000 square feet and produce an additional 200,000 batteries per year, is not expected to occur until late 2012 or 2013.

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Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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