Nissan Breaks Ground on Li-ion Manufacturing Facility for LEAF Packs in Tennessee; Capacity for 200,000 Packs per Year
27 May 2010
Nissan broke ground on the manufacturing facility in Smyrna, Tenn., that will produce the lithium-ion batteries that power the Nissan LEAF zero-emission vehicle. The all-electric Nissan LEAF will be produced at Nissan’s vehicle assembly facility in Smyrna beginning in 2012.
The battery plant, one of the largest vehicle battery manufacturing plants in North America at 1.3 million square feet at full capacity, will be capable of producing 200,000 advanced-technology batteries annually. It will be located adjacent to the vehicle assembly plant, which will be retooled to accommodate production of Nissan LEAF and will be capable of producing 150,000 electric cars annually.
Combined, the construction of the battery plant and modification of the Smyrna manufacturing facility to accommodate Nissan LEAF production represents an investment of up to $1.7 billion, which initially is being supported by a US Department of Energy loan for 80% 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.
Approximately 13,000 US consumers have placed a reservation for Nissan LEAF since reservations opened on 20 April. Nissan LEAF begins rolling out to select markets in the United States, Japan and Europe in December, with increased availability beginning in spring 2011, and full market rollout in 2012. It initially will be produced in Oppama, Japan, and will be equipped with lithium-ion batteries being produced in Zama, Japan. The Renault-Nissan Alliance will also produce lithium-ion batteries in Cacia, Portugal, and Sunderland, UK, as well as in Renault’s Flins plant in France.
Now, when Leaf sales are finalized in December, quality EV battery cells will be available and no general menace can crush, sue, or shelve critical technology.
Posted by: kelly | 27 May 2010 at 01:32 AM
It looks like the Leaf may have stiffer competition than thought,as GM plan to make the Volt price-competitive:
http://blogs.edmunds.com/greencaradvisor/2010/05/volt-ii---a-5000-battery-pack-and-a-rotary-engine-range-extender.html
Other point s interest is that they specify their battery costs, around $625kwh, and plan a rotary engine for the Volt II
Posted by: Davemart | 27 May 2010 at 02:21 AM
The importance of what Nissan is doing here cannot be stressed enough. Their battery factory will by far be the world’s largest producing 200,000*24kWh = 4.8 million kWh of batteries per year. For comparison, the current global production of lithium batteries of all kinds for all producers was about 16 million kWh in 2009. That factory is likely to be bigger than Sanyo’s and Panasonic’s combined production capacity for lithium batteries in 2009. I think that Nissan can make their battery packs for a little less than 10000 USD per 24kWh pack at that factory when it reach full capacity and this is the reason that they are able to price the LEAF at 33000 USD and still make normal profits selling that car.
And this is just the beginning. As reported Nissan (Link to next Nissan battery) are working on a second generation automotive battery with almost twice the power density than the 140Wh/kg at the cell level in the current LEAF and they expect to start producing that battery in 2015. As I read the story they will be able to cut the price almost in half per kWh with the new battery. I expect Nissan to be able to produce a 24kWh battery at about 6000 USD when they get into volume production with this next generation battery probably around 2017. Moreover, at that time a 24 kwh battery will carry a version 2 of the LEAF for about 120 miles because of weigh reductions, more efficient power electronics, motor and better aerodynamics.
Posted by: Account Deleted | 27 May 2010 at 02:46 AM
In the above I said 'twice the power density' but I should have written 'twice the energy density'. Sorry.
Posted by: Account Deleted | 27 May 2010 at 03:49 AM
Offsetting Manufacturing ERP Pain
12 Steps to a Better ERP Launch©
Carlos Lozano, MCS, MBA, Consultant
Improved processes and a competitive edge are the destination, but how do you get there? Whether your business is entering a first ever enterprise resource planning (ERP) experience or considering a move to an ERP that more effectively meets current requirements, clear expectations and planning can improve your experience and near term success. The following steps will help you reach your goal.
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3) Understand who owns the final responsibility for success.
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B. Project manager should welcome individual input while conveying that they will have final decision making responsibility.
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12) ERP will not be painless but the process can be made easier by following these guidelines.
Carlos Lozano, an entrepreneur and international manufacturing and ERP software expert, has launched two successful technology companies during the last 20 years. He is currently the CEO of ITS-Dynamics, Inc., with operations in Austin, Texas, Mexico and Chile, and the company is a leading Microsoft Dynamics Gold Partner in both the U.S. in Latin America. Lozano is an MBA graduate of the IPADE School of Business, considered one of the world’s top MBA programs. He may be contacted at [email protected] or you may visit the company web site: http://www.its-dynamics.com
Posted by: Brady Bragg | 27 May 2010 at 02:24 PM
"Nissan LEAF production represents an investment of up to $1.7 billion, which initially is being supported by a US Department of Energy loan for 80% of that investment, up to $1.4 billion."
So, this is another American taxpayer owned automaker - this time with a Japanese brand name. It is good that taxpayers be informed that they already own a piece of the LEAF and VOLT. Both are leading edge EVs. If buyers want to direct their spending toward more US product they might elect the VOLT. But both automakers are being subsidized (apparently GM has repaid its loans) by US taxpayers.
In the case of Nissan they might want to use this to help introduce the LEAF. "You helped us get here..." etc. Good news for the EV business. As Henrik points out this is a huge commitment by Nissan and the DOE.
Posted by: sulleny | 28 May 2010 at 09:28 AM
Not only do they get loans and tax breaks, but the buyers of the cars will get tax breaks as well. Some might call it picking "winners and losers" but if it picks winners that make the future better, then so be it.
Posted by: SJC | 28 May 2010 at 12:57 PM
We need to reduce oil consumption/imports - and this is one small way that is, I hope, worth it.
But loans and tax breaks to Nissan and to the buyers is a bit expensive.
And "GM, which hasn't announced pricing for the Volt, seems likely to be subsidizing it when the car does go on sale"
And, GM says; "Right now, the propulsion system is too expensive, . . the Volt's 16 kilowatt-hour battery pack cost now is "roughly $10,000 per car"
I hope these expensive, early EVs advance the state of the art (drive battery priced down) and make EVs truly cost effective.
Posted by: ToppaTom | 29 May 2010 at 10:04 PM