DOE closes $1.4B loan to Nissan to build EVs, advanced batteries
Washington D.C. — The U.S. Department of Energy (DOE) has closed its $1.4 billion loan agreement with Nissan North America, Inc. to retool their Smyrna, Tennessee factory to build advanced electric automobiles and an advanced battery manufacturing facility. The two projects will create up to 1,300 jobs and conserve up to 65.4 million gallons of gasoline per year, according to the DOE.
Nissan plans to use the loan to produce its all-electric vehicle, the LEAF, at its existing Smyrna, Tennessee plant. Nissan will offer electric vehicles to fleet and retail customers, and plans to ramp up production capacity in Smyrna up to 150,000 vehicles annually.
Nissan also plans to produce 200,000 battery packs annually at its manufacturing plant in Smyrna, as part of its transition strategy to electric vehicles. The automaker is also laying the groundwork in developing an infrastructure in the U.S. to support electric vehicles.
Nissan has formed partnerships with states, counties, municipalities, and electric utilities to prepare markets for the introduction of electric vehicles including the installation of charging stations.
The DOE says this is the third loan arrangement agreement signed by the federal agency with an advanced technology vehicle manufacturer. In September 2009, DOE signed its first loan agreement for $5.9 billion to Ford Motor Company. Last week, DOE also signed a $465 million loan agreement with Tesla Motors, which will be used to build manufacturing facilities in California for electric power-trains and its Model S electric sedan.
The Department has also signed a conditional commitment with Fisker Automotive to build plug-in hybrid electric vehicles and Tenneco, Inc. became the first advanced technology component manufacturer to obtain a conditional commitment from DOE in October last year.
The DOE was provided $7.5 billion for credit subsidy costs by Congress to cover up to $25 billion in direct loans to companies making cars and components in U.S. factories that increase fuel economy at least 25 percent above 2005 fuel economy levels.
See related articles:
DOE closes $465M loan to Tesla Motors
DoE finalizes $5.9B loan for Ford Motor
Fisker Automotive to reopen GM plant to build hybrid vehicles
Fisker Automotive gets $528M loan from DOE for hybrid vehicles
GM to invest $246M in electric motors, hybrid components
DoE announces $300M in grants for clean fuels, efficient vehicles
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