Nissan confirm new Sunderland battery 'gigafactory' that will help boost electric car production
Nissan say it'll enable the Wearside plant to massively increase production of electric vehicles.
Last updated 1st Jul 2021
Nissan have confirmed they're creating a 'gigafactory' in Sunderland to help boost the production of electric cars.
The Japanese manufacturer says the battery plant, built in partnership with Chinese manufacturer Envision, will create 2,000 jobs.
The government is thought to have provided some financial support to encourage Nissan's investment and ministers are expected to hail it as an endorsement of the UK's post-Brexit industrial ambitions.
The plant, which could be operational by 2024, would become the largest battery 'gigafactory' in the UK.
The term, coined by Tesla founder Elon Musk, comes from the unit of measurement representing billions.
Envision already produces lithium-ion batteries for Nissan's short-range Leaf model at Sunderland in a plant with capacity for 1.7 gigawatt hours (GWh) per-year.
The new plant will be much larger and is expected to have capacity for 6GWh, sufficient to produce batteries for up to 200,000 vehicles a year.
As well as committing to producing long-range Leaf models at Sunderland it is thought Nissan will commit to the full electrification of other models made at the plant including the Qashqai SUV.
The commitment to battery production at the UK's largest car plant will be a fillip to manufacturing as the industry races to meet the government's target of banning new petrol and diesel internal combustion engine vehicles by 2030.
UK battery production already lags well behind European competitors Germany and France with only one other gigafactory currently planned.
Britishvolt intends to build a plant on the former Blyth power station site in Northumberland promising 3,000 jobs and batteries for 300,000 vehicles a year.
Nissan believes investing in battery technology post-Brexit will give it a competitive advantage over its rivals.
New "rules-of-origin" requirements for vehicles set out in the Brexit deal mean that by 2027 vehicles with batteries produced outside the UK or the European Union will attract tariffs when exported to EU states.
By producing them in Sunderland, Nissan will ensure tariff-free access to European markets, as well as avoiding the financial and environmental costs of transporting batteries long distances.
Sunderland MP "thrilled"
Sunderland MP Sharon Hodgson has welcomed the news, here's her statement:
"I am thrilled with Nissan’s announcements which have the potential to transform car-making in the UK.
"Nissan’s confidence to make their next electric vehicle model in Sunderland is testament to the incredible skill of our region’s world-class workforce, and certifies the Sunderland plant’s position as the jewel in the Nissan crown.
"Having worked closely with Nissan to raise in Parliament the necessity of investment in battery technology for the long-term success of operations, I am delighted to see firm commitment with the announcement of a local Gigafactory.
"This is a massive sigh of relief for us all and will help the UK as we move through complex trading arrangements towards the 2030 electrification goal, as well as bringing a further 6,500 high quality jobs across the whole supply chain.
"I will continue to work closely with Nissan to help build and support a localised supply chain for components, so that tariff-free trade can continue in the coming years.
"This announcement is also testament to Sunderland City Council’s dedication to becoming a city of the future, providing green energy, green jobs and green investment.
"This collaboration between Sunderland Council, Nissan, Envision AESC with support from the Government will ensure that Nissan stays on the map as a global automotive superpower, with our region reaping the rewards.
"The North-East fuelled the industrial revolution with coal, and 200 years later we are taking a leading role in the development of the green revolution with our automotive giant - we should all be very proud."
This shows Sunderland's commitment to green energy
Sunderland MP Julie Elliott has also welcomed the news in a statement on her Twitter:
"We will need more factories like this"
The Unite Union have also welcomed the news but say to futureproof the UK we'll need SIX more factories like this one coming to Sunderland.
You can read what they've had to say here - https://planetradio.co.uk/metro/local/news/nissan-announcement-of-a-gigafactory-for-sunderland-is-a-fantastic-first-for-the-uk-but-cannot-be-the-last/
University of Sunderland response to Nissan expansion
Vice-Chancellor and Chief Executive of the University of Sunderland Sir David Bell reacts to today’s news of a major expansion in electric vehicle production at the city’s Nissan plant.
“For everyone who lives, works or studies in the city, this is tremendous news. As with so much else in recent times, it demonstrates that Sunderland can combine great ambition with an ability to deliver major projects for the good of all.”
CBI RESPONDS TO NISSAN GIGAFACTORY ANNOUNCEMENT
Responding to the Gigafactory announcement, Sarah Glendinning, CBI North East Director, said:
“Nissan’s investment is a strong vote of confidence in a greener future for the UK economy, and the workforce of the North East.
“This announcement signals the success of concerted efforts between business and government to seize the moment by creating jobs fuelled by decarbonisation efforts.
“And it must be the spark for six more gigafactories needed by 2040 to support a thriving electric vehicle market and prompt investment in widespread charging infrastructure.
“Ahead of COP26, we know inspiring global action through domestic progress is critical across the UK, and business is already playing its part alongside government to get the change we need to protect our planet for the next generation.”