Nissan has scrapped its $500 million plan to convert its Canton, Mississippi assembly plant into an all‑electric vehicle factory. The decision comes after the automaker reviewed U.S. market conditions, consumer demand and its own strategic priorities. Instead of producing EVs, the 4.7‑million‑square‑foot facility will resume manufacturing gasoline and hybrid models.

The move reverses Nissan’s 2021 "Ambition 2030" pledge to retool Canton for EVs and batteries, aiming to ship 200,000 electric cars in the U.S. by 2028. Weak domestic EV sales and the loss of the $7,500 federal tax credit prompted the rethink. The company also dropped the U.S. launch of the Ariya crossover and two electric sedans in 2024 market environment.

Nissan will instead produce internal‑combustion and hybrid vehicles at Canton, kicking off with a new body‑on‑frame Xterra slated for U.S. delivery in 2028. Follow‑up models will include the three‑row Frontier and at least three other platforms. While U.S. rivals like Ford and GM also scale back EV programs, global sales for batteries continue to climb in 2024 regions worldwide trend.