Nissan has received conditionally approval for a $1.6 billion loan by the U.S. Department of Energy. The loan falls under the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) that was authorized by Congress under Section 136 of the Energy Independence and Security Act of 2007 to accelerate the development of vehicles and technologies that increase U.S. energy independence, create cleaner means of transportation and stimulate the American economy.
Nissan intends to use the loan to retool its manufacturing plant in Smyrna, Tennessee, to produce zero-emissions electric vehicles, which emit no gases, and the lithium-ion battery packs required to power them. Dominique Thormann, senior vice president, Administration and Finance for Nissan North America, Inc (NNA) said: “This loan is an investment in America. It will help us put high-quality, affordable zero-emissions vehicles on our roads. This project will expand our Smyrna plant and that’s great economic news.”
Nissan hopes to become a leader in zero-emissions vehicles and intends offering electric vehicles in the United States and Japan by 2010. The first vehicles for the U.S. market will be built in Japan before production is shifted to the Smyrna plant in late 2012. Construction at the Smyrna plant is scheduled to begin by the end of this year, at which point an environmental assessment should be completed.