Andy Palmer, senior vice president and head of product planning at Nissan, says that investments to produce batteries at its Tennessee plant in the U.S. could exceed $1 billion, accounting for the bulk of Nissan’s government loan it was granted last month.
Nissan received a total of $1.6 billion to modify its Smyrna, Tennessee plant to produce zero-emission electric vehicles and lithium-ion battery packs to power them.
Palmer said that the site will have three “modules,” equivalent to the production of 54,000 batteries. Each module will cost $350 million to produce.
Nissan also plans to retool an existing line at its Smyrna plant to produce electric-vehicles in 2012. It is hoping to produce 15,000 electric-vehicles there a year.
First Drive: Nissan Cube EV Prototype:
– By: Omar Rana