The battery plant, which is 1.3 million square feet at full capacity, will be capable of producing 200,000 batteries annually. It will be located adjacent to the vehicle assembly plant, which will be retooled to accommodate production of Nissan Leaf and will be capable of producing 150,000 electric cars annually.

The all-electric Nissan Leaf will be produced at Nissan’s vehicle assembly facility in Smyrna beginning in 2012. Nissan Leaf and battery production is expected to create up to 1,300 jobs when the plants are operating at full capacity.

Combined, the construction of the battery plant and modification of the Smyrna manufacturing facility to accommodate Nissan Leaf production represents an investment of up to $1.7bn, which initially is being supported by a US Department of Energy loan for 80% of that investment, up to $1.4bn.

Carlos Ghosn, president and CEO of Nissan Motor, said: “Production of Nissan Leaf and lithium-ion batteries in Smyrna brings the US closer to its goal of energy independence, creates green jobs and helps sustain American manufacturing. Nissan is a leader in global manufacturing innovation, and this state-of-the-art battery plant will strengthen that leadership.”