Nissan plans more U.S. EV production to meet tax credit rules

Nissan currently sells two EVs in the United States, but only one qualifies for federal tax credits. The Leaf is eligible for up to $7,500 in year-end credits, but Nissan’s newest and more forward-looking EV, the Ariya, doesn’t qualify. The automaker said it will rectify that issue and expand its electric footprint starting in 2026 with more domestic production and consolidation of existing EV architectures.

New rules under the Inflation Reduction Act require that EVs’ final assembly location be in North America and, eventually, that battery raw materials be sourced from a country with which the U.S. has a free-trade agreement. Nissan said it would offer six EVs in the U.S. starting in 2026 and noted that several models would be built at its factory in Canton, Mississippi.

Nissan already has a significant manufacturing presence in other states. The company’s COO, Ashwani Gupta, said that its domestic footprint would play a role in opening eligibility for its vehicles here. The plan involves a potential overhaul of Nissan’s Dechard, Tenn., facility to build EV components. The automaker could also partner with a third party for battery production and already does so with Envision AESC at its Smyrna, Tenn., plant.