Nissan closed its $1.4 billion loan with the Dept of Energy, part of the $25 billion made available to car manufacturers to develop advanced vehicles. Nissan is going to use the money to retool the Smyrna, Tennessee factory to build advanced electric automobiles (Nissan Leaf) and build a battery manufacturing facility.
Nissan expects to create 1,300 jobs with the two projects.
"This is an investment in our clean energy future. It will bring the United States closer to reducing our dependence on foreign oil and help lower carbon pollution," said Secretary Chu in a statement. "We are committed to making strides to revitalize the American auto industry and supporting the development of clean energy vehicles."
Nissan is planning on a production capacity of 150,000 vehicles annually at the Smyrna plant, along with 200,000 battery packs.
This is the third loan closed on by auto manufacturers. Ford closed on a $5.9 billion loan back in September. Tesla closed last week on a $465 million loan to help in part to build the plug-in hybrid sedan, Nina.
Fisker is next in line, with a conditional agreement with the DOE.
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