Nissan’s New Leaf Faces Trouble Before Launch Due to Rare Earth Shortage originally appeared on Autoblog.
Before it even rolls off the line, Nissan’s next-generationLeaf EVis reportedly facing serious production cuts. According toKyodo NewsandReuters, the Japanese automaker isscaling back launch volumesfor its redesigned electric hatchback due toChina’s rare earth export restrictions, which have disrupted access to key components used in EV motors.The vehicle — set to debut later this year — is central to Nissan’s ongoing push to remain competitive in the global EV market. But if current reports are accurate, production capacity will now be trimmed just as the car enters a fiercely contested segment.
NissanRare Earths, Rare Options
China, which controls the vast majority of rare earth magnet exports, began restricting certain materials earlier this year. The move has already affected several automakers. Suzuki has temporarily halted production of the Swift subcompact. And now, Nissan’s revised output plan could pose a threat to broader restructuring efforts — including planned plant closures and a 15% workforce cut.The Leaf’s challenges echo broader concerns across the industry.Honda recently paused its hydrogen fuel cell factory plans in Japan, citing shifting priorities and market volatility. Andback in march, Mazda slashed $3.3 billion from its EV investment roadmap, underscoring how cautious Japanese automakers are becoming in an era of high cost and low certainty.
NissanNot Just A Supply Problem
For Nissan, this supply issue is just the latest in a growing list of complications. The company is also contending withfalling U.S. output,new tariffs on Mexican imports, andtight margins on EVs built for global markets. In December of last year,Nissan confirmed a cut of 100,000 vehicles from its North American production run, while it reevaluates sourcing and pricing strategies across its portfolio.These issues follow a string of restructuring efforts meant to sharpen the brand’s competitiveness — moves that former CEO Carlos Ghosn claims hepredicted years ago. In a recent interview, he suggestedNissan’s current crisis was inevitable, blaming long-term strategic drift and a lack of clarity about where the company wanted to go post-Ghosn.
NissanBigger Than One Car
The Leaf’s production hiccup is symbolic of a deeper problem: automakers are walking a tightrope between electrification ambition and geopolitical reality. Motors, inverters, and battery systems all rely on components that are largely sourced from one place — and when that place pulls back, production pipelines dry up.While Nissan hasn’t confirmed new volume targets, insiders say the Leaf’s revised plan will likely affect its rollout in both Japan and Europe, with U.S. availability delayed or throttled depending on supply chain conditions.
Will Nissan Recover?
It’s too early to count the Leaf out. The redesigned model features sharp styling, upgraded tech, and competitive range estimates — all of which should keep it relevant when it finally arrives. But in an EV landscape where timing is everything, delays and uncertainty could dent consumer confidence and weaken Nissan’s position just as rivals gain ground.For now, the company faces a difficult balancing act: managing expectations, navigating supply shortages, and proving it still belongs in the mainstream EV conversation.
Nissan’s New Leaf Faces Trouble Before Launch Due to Rare Earth Shortage first appeared on Autoblog on Jul 10, 2025
This story was originally reported by Autoblog on Jul 10, 2025, where it first appeared.
