Nissan spearheads £25 billion investment to manufacture two additional EVs in the UK

LondonNissan has announced a massive £1.12 billion investment in its British plant to manufacture electric versions of two models, providing a much-needed boost to the UK's auto industry and the prime minister's efforts to attract foreign investment. The Japanese automaker's plans for electric versions of the Qashqai and Juke, produced in Sunderland, will require a total investment of up to £2 billion, including the construction of a third battery plant in Britain and infrastructure projects funded by its partners.

The UK government is expected to provide support for the project. Nissan has been producing its electric Leaf model in Sunderland for several years and will continue to do so, with the site also supplying batteries from a small plant.

The company has revealed a $1.4 billion investment plan to construct a second battery plant in Sunderland, this time with a capacity of 9 gigawatt-hours. The project will be carried out in collaboration with Chinese partner Envision AESC. The announcement comes just ahead of Prime Minister Rishi Sunak's Global Investment Summit, where he aims to reignite interest from foreign companies that have waned since the 2016 Brexit vote.

Sunak stated on Friday that making the UK the prime location for business is the central focus of our economic strategy.

Nissan did not provide any comments regarding the subsidies or guarantees offered by Britain.

Nissan's senior vice president for manufacturing and supply chain, Alan Johnson, emphasized the crucial nature of government support in a statement to BBC radio. He also noted that discussions with the government are still ongoing. Additionally, Sunak is set to host Nissan's President and chief executive, Makoto Uchida, at the summit next week.

Nissan's investment is aimed at preserving 7,000 jobs in Sunderland and 30,000 jobs in the supply chain, while also reinforcing its longstanding presence in Britain since 1986.

As a vital hub for the Japanese company, Britain received a significant battery investment in 2021, demonstrating Nissan's confidence in the country despite the uncertainty surrounding its trading relationships post-Brexit.

However, Sunak, who assumed office as prime minister a year ago, has been successful in making positive changes. The recent Nissan deal follows closely after Tata Motors of India announced a £4 billion ($5 billion) investment in a UK electric vehicle battery plant to support its Jaguar Land Rover factories.

Industry experts have praised the progress of the Tata battery plant, but they believe that Britain requires a significantly higher production capacity for EV batteries in order to sustain a thriving and expanding auto industry.

Nissan has announced its plan to exclusively offer fully electric cars in Europe by the year 2030. The company will reveal the names of the new EV models and the schedule for production launches at a later time.

The automakers latest UK investment comes despite Sunaks decision in September to delay by five years a ban on sales of new petrol cars.