New EV powertrain plant to be built in Sunderland

A deal has been struck between Nissan, the Japan Automatic Transmission Company (Jatco) and the UK Government to build a new manufacturing site in Sunderland.

The £48.7m investment has been described by the Government, which supported Jatco with more than £12m grant funding, as a “massive vote of confidence in the UK economy”.

The new site will help create 183 new high-value jobs in the region and support more than 400 in the wider supply chain. 

It will also establish Jatco’s first and only European plant and will produce three-in-one electric vehicle (EV) powertrains for Nissan’s neighbouring Sunderland plant.

Nissan is one of the largest UK-based vehicle manufacturers, employing around 6,000 people across its Sunderland facilities, and today’s announcement builds on their £2 billion investment in the region in 2023 to build EVs.  

From 2026, Jatco aim to produce 340,000 electric powertrains per year to supply new generations of Nissan EVs. 

Business and trade secretary, Jonathan Reynolds, said: “Sunderland is the beating heart of the UK’s automotive industry. Today’s announcement is a massive vote of confidence in the UK economy and this government’s plans to make Britain the destination of choice for investment.

“Not only will this boost our thriving auto industry, but it will help secure hundreds of jobs across the North East.

“The Government is working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK and our modern Industrial Strategy will build on this legacy, bringing growth, jobs and opportunities to every part of the UK.”

The investment has been enabled by the ATF, which is accessed through the Advanced Propulsion Centre UK (APC), and aims to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology.

Tomoyoshi Sato, CEO of Jatco, said: “I am so proud to officially open Jatco UK in the North East of England. And I am very grateful for the support of the UK Government, Sunderland City Council, and all others involved in the establishment of Jatco UK, and look forward to supporting Nissan’s EV36Zero project with our electric powertrains.”

Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan AMIEO, added: “This is a fantastic step forward for our world-first EV36Zero plan.

“Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future.”

The Autumn Budget confirmed more than £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. 

Building on the achievements of the ATF and APC programmes, the Government says that this long-term commitment is a vote of confidence in the UK’s automotive industry, supporting investment and productivity growth across UK automotive.