China's Supply Obstacle Hits Latest Nissan Leaf Production

The newest Nissan Leaf wheelhouse or third generation. (Doc. Nissan Motor)

JAKARTA Global automotive manufacturer Nissan appears to be facing significant challenges in its latest electric vehicle (EV) model production plan, the Nissan Leaf.

Reports show that the shortage of raw materials of rare material, most of which are sourced from China, is the main cause of this production restriction. This situation adds to the long list of challenges Nissan faces amid massive restructuring and a decline in global EV sales.

According to a Reuters report forwarded by Car and Driver, quoted Monday, July 14, China's rare material export restrictions have created serious supply barriers. This condition has a direct impact on the latest Leaf production plan that was supposed to be launched for the 2026 model. In fact, the latest Nissan Leaf, designed as a small crossover with an estimated range of up to 487 kilometers and prices starting at around 30 thousand US dollars (around Rp487 million), is expected to be an affordable EV offering.

Spokesman Nissan has confirmed that the latest Leaf project is running on schedule for planned launches. Sales in the United States are expected to start in the fall of 2025, with shipments in Japan this year and in Europe around spring 2026. However, they did not provide direct comments on reports on production restrictions, calling them "spectulative reports."

However, the issue of scarcity of material shortages isn't the only challenge. In the United States, removing the federal price cut program for EVs will certainly cool sales. Globally, this shortage of rare materials will affect production in the Japanese and European markets. In fact, Nissan has started voluntary early retirement talks with workers at factories in the UK where the Leaf will be produced.

This condition comes amid Nissan's ambition to reduce 15 percent of his workforce and close seven factories as part of a restructuring effort. The company's current financial situation is quite fragile, and slowing EV sales will certainly not help. In addition, there is also a 10-month delay for two EV models planned to be built at the Nissan plant in Canton, Mississippi, United States.