Nissan's Upcoming Leaf May Face Challenges Before It Even Launches | Carscoops

      Nissan is reportedly reducing production of the newly launched Leaf electric vehicle.

      The automaker is said to be encountering a shortage of parts tied to rare earth materials.

      The 2026 Leaf is expected to arrive in the U.S. this fall with two distinct powertrain options.

      The Trump administration recently indicated the termination of the clean vehicle credit, which could provide consumers with savings of up to $7,500. This incentive will expire on September 30, likely leading to increased EV prices and reduced demand.

      This scenario is already creating challenges, although it cannot be solely attributed to Nissan's reported decision to scale back production of the revamped Leaf.

      Although the model has not yet been released, reports from Japan indicate that the company is decreasing production due to rare earth export constraints enforced by China. Reuters cites Kyodo News, which states that these restrictions have led to a shortage of parts, although details remain unclear.

      Rare earth materials are crucial for various industries, and China's export limits have affected several automakers, including Ford and Suzuki. Suppliers are struggling as they cannot always secure the necessary materials.

      The European Association of Automotive Suppliers has recently warned that the supply chain is undergoing substantial disruption due to China’s latest export restrictions on rare earth elements and magnets. They noted that this situation impacts both internal combustion engine and electric vehicles, which jeopardizes automotive production and thousands of jobs in the European Union.

      Regarding the Leaf, the third-generation model was fully unveiled last month and is set to hit U.S. dealerships this fall. It features a crossover-inspired design along with a contemporary and technologically advanced interior.

      The vehicle will be available with two powertrain options, including a base version that pairs a 52 kWh battery with a 174 hp (130 kW / 177 PS) electric motor. Additionally, customers can opt for a 75 kWh battery matched with a 215 hp (160 kW / 218 PS) motor.