Tennessee: The Hub of Electric Vehicle Manufacturing in the U.S.
Within the Volunteer State, three prominent electric vehicle assembly plants are driving innovation and production. Tennessee is home to a diverse range of EV models from Nissan, Volkswagen, and Cadillac. Among these, the Volkswagen ID.4 ranks as an international best-seller, while the Nissan Leaf stands out for its affordability. According to Statista, the American EV market is set to generate over $95 billion by 2025, despite lingering hesitancy among consumers. This article explores how Tennessee contributes significantly to this growing industry with key models assembled locally.
In 2010, Nissan initiated the production of the Leaf in Japan before transitioning battery manufacturing to Tennessee's Smyrna Assembly Plant in 2013. This move enabled Nissan to produce a localized version tailored for the U.S. market. Initially offered at prices ranging from $28,800 to $34,840, the Leaf was eligible for federal tax incentives even back in 2013. With additional state-level benefits, the cost could drop significantly, making it one of the most attractively priced EVs available today. Despite no longer qualifying for full federal credits, the Nissan Leaf remains competitively priced, starting at $28,140.
Another major player in Tennessee’s EV landscape is Volkswagen, which produces the globally popular ID.4 at its Chattanooga plant. Known for its robust features, including a driving range of 291 miles and advanced standard amenities such as adjustable ambient lighting and heated front seats, the ID.4 retails at $45,095. Although it doesn’t qualify for the complete federal EV tax credit, its appeal extends across both the U.S. and European markets.
General Motors’ Cadillac division also plays a crucial role through its Spring Hill facility, where the LYRIQ luxury electric SUV is manufactured. Priced at $58,595, the LYRIQ qualifies for the full federal EV tax incentive, reducing its base price to approximately $51,095. Featuring a driving range of 326 miles, along with cutting-edge technology like a 33-inch LED display and wireless charging capabilities, the LYRIQ has proven successful, claiming the title of best-selling vehicle in its class during the first three quarters of 2024.
Tennessee continues to solidify its position as a leader in the EV manufacturing sector. By assembling vehicles like the Nissan Leaf, Volkswagen ID.4, and Cadillac LYRIQ, the state not only supports domestic production but also caters to varying consumer preferences within the burgeoning electric vehicle market. These efforts underscore Tennessee's pivotal role in shaping the future of sustainable transportation in America.