As part of its £1 billion electricity investment, Nissan announced plans to build a large battery factory. The investment aims to ensure the future of its Sunderland car plant after the UK bans gasoline and diesel sales in 2030.
The Japanese auto giant will create more than 6,000 direct and indirect jobs by developing new factories next to its existing auto factories, which will allow the UK to attract the battery investment needed to support its broader auto industry. People hope to build a new electric car on their site.
Nissan’s battery supplier Envision AESC already operates a small battery factory in Sunderland and will invest 450 million pounds to build the factory, which will create 750 jobs.
The automaker will then invest 423 million pounds to produce a new electric model in its car factory, using batteries from the new factory, which will create 900 jobs.
The two companies estimate that this will bring more job opportunities to 4,550 employees in the supply chain.
The first phase of the site will have a capacity of 9 GWh, capable of producing enough batteries for 100,000 cars per year.
If the demand for Nissan’s electric vehicles rises sharply, Envision may invest another 1.8 billion pounds to expand the new plant to 25GWh by the end of the decade.
To help in the first phase of the project, Sunderland City Council will invest 80 million pounds to create more electricity for the site, install wind farms, solar parks and dedicated energy storage facilities made from second-hand electric car batteries.
The development project is the first large-scale battery factory built in the UK, and with the arrival of governments around the world Race to attract investment in this field Support their own automotive industry to switch from internal combustion engines to electricity.
British ministers have set aside 500 million pounds to attract investors, but the industry warned that this amount is too small compared to the 2.9 billion euros the European Union has provided to its member states.
Secretary of Commerce Kwasi Kwarteng called the investment “a big step forward in our ambition to put the UK at the forefront of the global electric car race.”
Ashwani Gupta, Nissan’s chief operating officer, called it a “milestone day” for the business.
With the British government Phase out sales of gasoline and diesel models by 2030By the end of this century, automakers with British factories will need to purchase batteries and increase the production of electric vehicles.
Due to the weight of batteries, automakers tend to buy batteries close to car factories, which means facilities in the UK are needed to maintain production at existing factories, including Toyota, Mini, Vauxhall and Jaguar Land Rover.
Earlier this week, the Association of Automobile Manufacturers and Traders caveat The UK needs 60GWh of battery plants to maintain the current industrial scale. It warned that in the worst-case scenario, the country has only one large project, which could lose more than 90,000 roles.
SMMT CEO Mike Hawes said that Nissan’s investment is a “real vote of confidence, but still just one” to protect the country’s vast network of factories.
“This is a highly competitive industry, and we need more than that,” he added.