The government closed a $1.4 billon loan agreement with Nissan to help retool a factory in Tennessee to build up to 150,000 all-electric automobiles a year and the battery packs to power them, the Energy Department said on Thursday.
"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 Energy Secretary Steven Chu. "We are committed to making strides to revitalize the American auto industry and supporting the development of clean energy vehicles."
The Department of Energy and Nissan said the loan will create 1,300 U.S. jobs.
Nissan will use the government funding to build its all-electric, five-passenger sedan, called the LEAF.
The company also plans to produce up to 200,000 battery packs a year for the vehicles. The company website says the LEAF will be powered by fully rechargeable lithium ion batteries.
"Nissan applauds the Department of Energy's support of the development of innovative, advanced vehicle technologies and the creation of clean energy jobs," said Scott Becker, senior vice president, Administration and Finance, Nissan North America.
