Nissan Delays U.S. EVs, Cuts Leaf Output Amid Rare-Earth Shortage

Nissan Motor Co. is postponing the launch of two midsize electric sport-utility vehicles at its Canton, Mississippi factory by as much as a year, industry reports said. Production that was slated to begin in 2028 will now start in late-2028 or early-2029 after the U.S. scrapped federal tax credits for electric vehicles, eroding demand and denting the project’s economics. The Japanese carmaker is also scaling back output plans for its next-generation Leaf after China’s export controls on dysprosium and other rare-earth elements squeezed supplies of permanent magnets essential for electric-motor production. Shipments of such magnets from China have fallen about 75 percent since the restrictions were imposed, leaving inventories tight despite Beijing’s partial easing of licensing requirements. Supply interruptions have already forced Suzuki Motor to halt assembly of its Swift subcompact, while Nissan warns that relief could be short-lived. Facing both component shortages and weaker market appetite, the company is revising its longer-term strategy and will lower the proportion of electric vehicles it aims to build in 2027, Kyodo reported.