Nissan announces £1bn investment in Sunderland

Nissan said it would build a battery factory at its UK plant as part of a £1bn investment that secures the Sunderland site's future beyond the UK's ban on new petrol and diesel vehicles in 2030.

The Japanese carmaker said the EV36Zero project brings together electric vehicles, renewable energy and battery production. It will create 6,200 jobs at Nissan and its suppliers, including 1,650 new jobs at Nissan and its partner Envision AESC in Sunderland, the company said.

The decision marks a shift by Nissan, which has warned since before the Brexit referendum that leaving the EU could make the Sunderland plant, established in the 1980s as a bridge to the European market, unviable. The highly efficient factory is one of the most important employers in north east England.

Nissan's chief executive, Makoto Uchida, said: "This project comes as part of Nissan's pioneering efforts to achieve carbon neutrality throughout the entire lifecycle of our products. Our comprehensive approach includes not only the development and production of EVs [electric vehicles], but also the use of on-board batteries as energy storage and their reuse for secondary purposes."

The initial £1bn investment will come from Nissan, Chinese battery maker Envision and Sunderland city council, Nissan said. The UK government has not revealed any financial support to Nissan that might have helped secure the investment.

UK business secretary Kwasi Kwarteng said: "This is a huge step forward in our ambition to put the UK at the front of the global electric vehicle race, and further proof, if any was needed, that the UK remains one of the most competitive locations in the world for automotive manufacturing.

"The cars made in this plant, using batteries made just down the road at the UK's first at scale gigafactory, will have a huge role to play as we transition away from petrol and diesel cars and kick-start a domestic electric vehicle manufacturing base."