Nissan Plans More U.S. EV Production To Meet Tax Credit Rules

Republished By Plato

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Nissan currently sells two EVs in the United States, but only one qualifies for federal tax credits. The Leaf is eligible for up to $7,500 in year-end credits, but Nissan’s newest and more forward-looking EV, the Ariya, doesn’t qualify. The automaker said it will rectify that issue and expand its electric footprint starting in 2026 with more domestic production and consolidation of existing EV architectures.

New rules under the Inflation Reduction Act require that EVs’ final assembly location be in North America and, eventually, that battery raw materials be sourced from a country with which the U.S. has a free-trade agreement. Nissan said it would offer six EVs in the U.S. starting in 2026 and noted that several models would be built at its factory in Canton, Mississippi.

Nissan already has a significant manufacturing presence in other states. The company’s COO, Ashwani Gupta, said that its domestic footprint would play a role in opening eligibility for its vehicles here. The plan involves a potential overhaul of Nissan’s Dechard, Tenn., facility to build EV components. The automaker could also partner with a third party for battery production and already does so with Envision AESC at its Smyrna, Tenn., plant.

That effort might be the easy part for Nissan. Gupta noted that local raw material sourcing would be the automaker’s bigger challenge. “IRA is challenging, but on the other side, it’s an opportunity to accelerate the competitive electrification,” he told Automotive News.

Driven by the new rules, Nissan said it believes its U.S. sales will grow to more than 40% by 2030. That’s an increase over its previous estimates and will mean a significant increase in its current EV sales volume. Out of almost 730,000 vehicles sold last year, Nissan moved just 12,025 EVs.

Gupta also hinted at Nissan’s future EV plans, saying it would simplify powertrains and work to streamline platform designs. Nissan’s current EV catalog involves 16 variants for three major sales regions, but going forward, the company wants one platform for those regions with a few variations on battery and suspension designs.

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