Nissan doesn’t have a significant amount of rare earth minerals, which could impact the production of the new Leaf. China’s limits on shipments of rare earth elements are making the global EV market difficult. Nissan’s plans to build two more electric vehicles at its plant in Mississippi have also been put off. Nissan has encountered setbacks in its plans just as it was getting ready to launch a new version of the Leaf. A story from Reuters in Tokyo reports that production goals have been lowered due to a shortage of parts, as China restricts imports of rare earths. The brand-new Leaf, which was larger than the first car, was scheduled to be released in 2026. The S+ grade, currently a small SUV, is expected to offer a good range of up to 303 miles and a starting price of around $30,000. The 2026 Leaf, like its predecessor, was designed to offer affordable electric transportation. Nissan’s sales of small electric cars in the US are expected to decline now that the federal EV incentive program has ended. On a global level, however, the shortage of rare earths will impact production in Japan and Europe. People who work at a UK plant that will manufacture the Leaf have already been asked to quit voluntarily by Nissan. Nissan is taking a significant risk by closing seven plants and laying off 15% of its staff. The company’s already weak finances will not get better if sales of electric vehicles (EVs) slow down. Additionally, Nissan’s Canton, Mississippi, plant will not be able to produce two planned EV cars until ten months later than originally planned. Nissan’s dealer network in the US relies more heavily on sales of its iconic gas-powered crossovers, such as the Rogue and Pathfinder; however, the redesigned Leaf has helped the company generate more revenue. Although there were some initial problems, the original was able to meet its goal of providing effective EV travel. This new model would have retained the name while also offering EV buyers more space and a lower price. The new Leaf will have a hard time this growing season, even if it does better than before. Nissan has been contacted by invoice-pricing. If we hear back, we will change this story.
