SMYRNA, Tenn., May 26, 2010 -- Nissan broke ground today on a new manufacturing facility in Smyrna, Tennessee that will produce the lithium-ion batteries for the upcoming LEAF. Nissan also announced that it will retool its existing Smyrna plant, which is adjacent to the new battery facility, to manufacturer the zero-emission, all-electric Nissan LEAF beginning in 2012. The LEAF plant will be capable of producing 150,000 electric cars annually.

Nissan says that, combined, Nissan LEAF and battery production will create up to 1,300 jobs when the plants are operating at full capacity. With 1.3 million square feet of space and the ability to produce 200,000 advanced-technology batteries annually, the new battery plant will be one of the largest vehicle battery manufacturing plants in North America.

“Nissan is committed to affordable, sustainable mobility,” said Carlos Ghosn, president and CEO of Nissan Motor Co., Ltd. “What we’re doing here will radically transform the automotive experience for consumers. Today is a major step in helping create a green economy in the United States. Production of Nissan LEAF and lithium-ion batteries in Smyrna brings the United States closer to its goal of energy independence, creates green jobs and helps sustain American manufacturing. Nissan is a leader in global manufacturing innovation, and this state-of-the-art battery plant will strengthen that leadership.”

Tennessee Governor Phil Bredesen said that Tennessee has become a national leader in driving clean energy innovation, and Nissan’s commitment to build this advanced-technology battery facility in Tennessee is a key part of that success.

“Nissan’s investment in Tennessee began more than two decades ago, and this new manufacturing plant leads the way to the next generation of automotive and clean energy jobs in the Volunteer state,” said Governor Bredesen.

The new battery plant and retooling of the Smyrna plant for LEAF production represent an investment of up to $1.7 billion, which initially is being supported by a U.S. Department of Energy loan for 80 percent of that investment, up to $1.4 billion.

The loan was issued as part of the Advanced Technology Vehicles Manufacturing Loan Program, a $25 billion program authorized by Congress as part of the Energy Independence and Security Act of 2007. The program is designed to accelerate the development of vehicles and technologies that increase U.S. energy independence, create cleaner means of transportation and stimulate the American economy.