Nissan to invest £2bn in Sunderland electric vehicle factory

Nissan has announced it will build three fully-electric models at its Sunderland plant as part of a £2 billion investment by the manufacturer.

The manufacturer, which already builds the Leaf there, has confirmed it will also be the site for production of all-electric versions of Qashqai and Juke, as well as the next-generation Leaf.

Makoto Uchida, Nissan president and CEO, said: “Exciting electric vehicles are at the heart of our plans to achieve carbon neutrality.

“With electric versions of our core European models on the way, we are accelerating towards a new era for Nissan, for industry and for our customers.

"The EV36Zero project puts our Sunderland plant, Britain's biggest ever car factory, at the heart of our future vision.

“It means our UK team will be designing, engineering and manufacturing the vehicles of the future, driving us towards an all-electric future for Nissan in Europe."

The announcement means the EV36Zero hub in Sunderland, Nissan's blueprint for future manufacturing, will consist of production of three electric vehicles (EVs), three gigafactories and up to £3bn investment.

Both vehicle and battery manufacturing will be powered by the EV36Zero Microgrid, which will incorporate the wind and solar farms at Nissan and will have the capability to deliver 100% renewable electricity to Nissan and its neighbouring suppliers.

The announcement follows Nissan's confirmation that all its new cars in Europe from now will be fully electric, and that it expects its passenger car line-up in Europe to be 100% electric by 2030

The additional two models, alongside an additional gigafactory and further investment for infrastructure projects, will result in an investment of up to £2bn.

It means Nissan's plans for the future electric versions of Qashqai, Juke, and the replacement for Leaf, will enable up to a £3bn investment in the UK.

In addition, the UK Government has awarded £15m of funding for a £30m collaborative project led by Nissan.

This aims to strengthen the technical expertise and R&D zero emission vehicle capability of the Nissan Technical Centre (NTCE) in Cranfield, Bedfordshire, increasing opportunities for securing additional UK R&D investment in future vehicle models.

Mike Hawes, chief executive of uk automotive trade body the Society of Motor Manufacturers and Traders (SMMT, said: “The UK’s automotive manufacturing sector continues to demonstrate its investment attractiveness with yet another significant commitment.

"This new announcement from Nissan – coming on the back of billions recently committed by other manufacturers and supported by the UK government – underlines Britain’s position as an increasingly competitive location for electric vehicle production.

"It is tremendous news for the company, its workforce, the region and the UK’s supply chain, which will drive economic growth and decarbonisation across the UK.”

Nick Williams, managing director of ​Lex Autolease, part of Lloyds Banking Group​, added: “For the UK to remain a leader in vehicle electrification, it is vital that Government departments and industry bodies continue to work together to encourage manufacturers that Britain is the most attractive place to invest in electric vehicle production.  

“Commitments such as this one by Nissan are key to the UK delivering on the ambitions set out its road to zero policy, and it’s clear that the long-term policy framework from the Government, which includes the ZEV mandate, is providing manufacturers with the confidence they need to invest in the UK.

“By ensuring the product supply and supporting charge network is in place, we can continue to help individual drivers and businesses accelerate their transition to an electric future.”

In its Autumn Statement earlier this week, the Government allocated £2bn of funding earmarked for manufacturers of zero emission vehicles.