Nissan announces £1bn Sunderland gigafactory to boost EV production

Nissan will be investing £1 billion to turn its Sunderland plant into a hub for electric vehicle production in the wake of the global chip shortage and to get a head start for when the UK bans petrol and diesel vehicles in 2030.

The plant looks may also create 1,650 jobs and will be responsible for the production of a "next-generation" all-electric car model.

Read more: Nissan plans to turn its Sunderland plant into a battery megafactory

The UK is hoping to raise investment in the site and in battery production to boost its automotive sector coming out of the pandemic.

The automaker's battery supplier, Envision AESC, is set to invest £450 million into the plant. It currently already operates a small battery production plant in Sunderland.

As many as 4,500 further people may find employment along the supply chain, the company hints.

If completed, it will become the largest battery plant in the UK.

Prime Minister Boris Johnson described the investment, in which the government have become financially involved, as a "major vote of confidence" in the UK and essential in its "electric vehicle revolution."

"Commitments like these exemplify our ability to create hundreds of green jobs and boost British industry, whilst also allowing people to travel in an affordable and sustainable way so we can eliminate our contributions to climate change," he added.

With the UK having vowed to ban the sales of all diesel and petrol cars by 2030, there is a limited timeframe for the country's automakers to adopt greener engines.

The gigafactory is estimated to be operational by 2024, by which time, electric vehicle technology should operate a far larger share of the market.

There is also the issue of domestically source car parts such as batteries, which form an integral part of the EU's post-Brexit trade deal with the UK, in which certain parts must be sourced from within the EU or UK by 2027. Companies that do not comply may face heavy fines.

Nissan had also been wary of the potential fallout from Brexit, warning a bad deal could be bad for business.

However, the company chief Ashwani Gupta later expressed support of the deal, which he said gives Nissan a competitive edge, particularly in eventually recovering from the coronavirus pandemic and semiconductor shortage.

Read more: Nissan chief hails Brexit victory as it looks to expand UK production

He declined to comment on how much the government were involved in the expansion of the Sunderland plant, but added it would not have been possible without it.

Gupta told the BBC: "The key success factor for Brexit has always been trade-friendly business conditions to sustain our business not only in the UK but in the whole of Europe and thanks to Brexit, Nissan is moving forward to use Brexit as an opportunity."

Back to Homepage

Back to Transportation

Back to Construction & Engineering