Nissan Opens New Battery Plant - Analyst Blog
December 17 2012 - 9:15AM
Zacks
Nissan Motor Co. (NSANY) has announced the
opening of the largest lithium-ion automotive battery plant in
Smyrna, Tennessee. The new plant is expected to address the
company’s goal of making zero-emissions mobility around the
world.
The batteries manufactured at this facility will serve as the power
source for the all-electric Nissan LEAF and also the future
vehicles portfolio of the company. The batteries will also be
deployed in the zero-emission 2013 Nissan LEAF, which will be
produced from the first half of 2013. LEAF is one of the highest
selling electric vehicles with 46,000 vehicles sold globally and
18,000 vehicles to the U.S. customers since its launch in December
2010.
The production of the first lot of batteries has completed the
aging process and is now ready to receive the first charge. The
plant has a capacity to produce up to 200,000 batteries annually,
subject to the market demand.
The new battery plant is located adjacent to the company’s existing
vehicle assembly plant, which has been restructured for the
production of LEAF. This restructuring of the plant has created
about 300 jobs in the U.S. The company expects that job
opportunities in the U.S. will increase up to additional 1,000 with
the rise in demand for both batteries and Nissan LEAF.
The company has invested around $1.7 billion for the construction
of the battery plant and modification of the Smyrna manufacturing
facility, for which it obtained a $1.4 billion loan from the U.S.
Department of Energy. The loan was issued as part of the Advanced
Technology Vehicles Manufacturing Loan Program. These programs,
designed for the development of vehicles and technologies, are
aimed at creating a cleaner means of transportation and improve the
country’s economy.
Nissan Motor is the sixth largest automaker in the world. The
company, along with its subsidiaries, engages in the production and
sale of automotive products, industrial machinery and marine
equipment, primarily in Japan, North America, and Europe. It
manufactures passenger cars, trucks, buses, forklifts, light
commercial vehicles, power trains and parts, and also offers sales
financing activities.
Nissan Motor competes with Honda Motor Co. (HMC)
and Toyota Motor Corporation (TM). Currently, its
shares retain a Zacks #4 Rank, which translates into a short-term
(1 to 3 months) Sell rating.
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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