Nissan has announced major battery factories in the UK as part of Sunderland’s € 1 million plan

Nissan has unveiled plans for a large-scale battery factory as part of a € 1 billion electricity investment that will ensure the future of the Sunderland auto plant beyond the UK’s ban on the sale of petrol and diesel in 2030.

In a move that prompts the UK to attract investment in batteries needed to support its extensive industrial engine, the Japanese car giant will create more than 6,000 direct and indirect jobs by developing new facilities next to its existing car plant and building a new electric car at its site.

Nissan’s battery supplier Envision AESC, which already has small battery facilities at Sunderland, will invest £ 450 million in building the plant, which will create 750 roles.

The automaker will invest £ 423 million in its car factory to build a new electric model using batteries from the new facility, creating 900 jobs.

According to the companies, the supply chain will create employment for an additional 4,550 people.

The first phase of the site will have a capacity of 9 Gigawatts per hour, capable of producing enough battery for 100,000 cars a year.

If demand for Nissan electric vehicles rises significantly, Envision could invest an additional 1.8 million euros by the end of the decade to expand the new plant to 25GWh.

To support the first phase of the project, Sunderland City Council will invest £ 80 million to generate more energy for the site by installing a special energy storage facility consisting of wind farms, solar parks and second-hand electric car batteries.

The development is the first large-scale battery plant built in the UK and comes as a worldwide government a race to attract investment in the field to support their automotive industries as they transition from combustion engines to electricity.

Britain’s ministers have set aside £ 500 million to care for investors, although the industry has warned that the amount is too small compared to the € 2.9 billion the EU makes available to its members.

Business Secretary Kwasi Kwarteng has “made great strides towards investment in our intention to put the UK ahead of the global race of electric vehicles”.

The head of operations at Nissan Ashwani Gupta said it was the “benchmark day” of the business.

With the UK government the disappearance of gasoline and diesel model sales by 2030, Automakers with plants in Britain will have to create batteries and increase the production of electric vehicles by the end of the decade.

Due to its weight, motorists tend to buy batteries near the vehicle plant, which means UK facilities are needed to maintain production at current Toyota, Mini, Vauxhall and Jaguar Land Rover sites.

Earlier this week the Association of Motor Manufacturers and Dealers warn Britain needs 60GWh battery plants to maintain the current size of the industry. In the worst case, being the only large-scale project in the country, more than 90,000 roles could be lost, he warned.

SMMT CEO Mike Hawes said Nissan’s investment is “a vote of confidence, but still unique” from a number of things that need to happen to take care of the country’s extensive plant network.

“The industry is very competitive, and we need more than that,” he added.