Nissan Expects To Qualify For Full US EV Tax Credits From 2026

The automaker plans to offer six EV nameplates in the US market from 2026, including four that will be made locally.

Nissan Chill-Out Concept

Photo by: Nissan

Dan Mihalascu

By: Dan Mihalascu

Mar 2, 2023 at 12:09pm ET

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Nissan estimates it will be able to comply with US local sourcing rules for EV tax credits from 2026, after consolidating its platforms and drivetrains for more competitive EVs.

Starting in 2026, the automaker plans to offer six EV nameplates in the US market, including four that will be made locally. Those will be two sedans and two crossovers made for the Nissan and Infiniti brands at the automaker's plant in Canton, Mississippi. These models will qualify for the full $7,500 incentive.

The remaining two models will be the Ariya crossover and the successor to the Leaf hatchback, which is expected to take the shape of a compact crossover.

Nissan COO Ashwani Gupta said the company will manage to tap into the tax credits offered under the Inflation Reduction Act (IRA) through compliance with rules on final assembly, content from foreign entities of concern, and the localization of battery components and minerals.

"We as Nissan are confident that we will be complying for IRA with localization starting in CY 2026," Gupta said at a briefing on February 27 about the company's electrification strategy, according to Automotive News.

Gallery: Nissan Chill-Out concept

Nissan CEO Makoto Uchida with the Chill-Out concept

Nissan CEO Makoto Uchida with the Chill-Out concept Nissan COO Ashwani Gupta with Nissan CEO Makoto Uchida and the Chill-Out Concept Nissan Chill-Out concept

In addition to the four models made at the Mississippi plant, Nissan's US localization plan will include making electric powertrains in the country, including a possible revamp of the engine plant in Decherd, Tennessee, to make EV units.

For the US-spec Nissan Leaf, which is assembled in Smyrna, Tennessee, the automaker currently imports completely built electric powertrains from Japan. Gupta said the company might also consider adding a second source for batteries in the US, in addition to current supplier Envision AESC, which builds batteries in Smyrna, Tennessee.

Mind you, the most difficult challenge by far will be how Nissan will manage the transition to fully localized mineral supply, Gupta said, adding that it's also an "an opportunity to accelerate the competitive electrification."

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Because of IRA, Nissan expects more than 40 percent of its US sales to be all-electric by 2030, up from 40 percent earlier. According to Gupta, the final sales ratio depends on the finalization of IRA requirements.

Nissan sold just 12,025 Leafs and 201 Ariyas in the US last year, out of a total of 729,350 sales for the automaker.

More stories on Nissan and electrification

Nissan Accelerates Electrification: 19 New BEVs By 2030

Nissan To Launch EV With Solid-State Batteries In Five Years

Source: Automotive News

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