Nissan announces UK’s largest battery factory as part of £ 1 billion Sunderland plan

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Nissan has unveiled plans for a large-scale battery factory as part of a £ 1bn electricity investment that secures the future of its Sunderland car plant beyond the UK ban on selling gasoline and diesel in 2030.

In a move that makes it hop that the UK can attract the investment in batteries needed to support its wider engine industry, the Japanese car giant will create more than 6,000 direct and indirect jobs by developing the new facility Next to your existing car plant and promising to build a new electric car in its place.

Nissan’s battery supplier, Envision AESC, which already runs a small battery factory in Sunderland, will invest £ 450 million in the construction of the plant, which will create 750 functions.

The manufacturer will then invest £ 423 million to manufacture a new electric model at its car plant, with batteries from the new facility, in a move that will generate 900 jobs. Companies estimate that this will generate employment for 4,550 more people within the supply chain.

The development is the first large-scale battery plant to be built in the UK and arrives as governments around the world race to attract investment in the field to support their own automotive industries as they move from combustion engines to electricity.

To help with the first phase of the project, Sunderland City Council will invest £ 80 million to create more energy for the site, installing wind farms, solar parks and a dedicated energy storage facility made of second hand electric car batteries.

The government has also given about £ 100 million to Nissan for the project, people report on the discussions.

Business Secretary Kwasi Kwarteng described the investment as “a major step forward in our ambition to place the UK at the forefront of the global electric vehicle race”.

Nissan chief operating officer Ashwani Gupta described it as a “benchmark day” for the business.

The first phase of the site will have a capacity of 9 Gigawatts per hour, capable of producing enough batteries for 100,000 cars a year. If demand for Nissan’s electric vehicles rises sharply, Envision may invest £ 1.8 billion to expand the new plant to 25 GWh by the end of the decade.

With the UK government the phasing out of the sale of gasoline and diesel models in 2030, manufacturers of vehicles with British plants will have to obtain batteries and increase production of electric vehicles by the end of the decade.

Due to their weight, vehicle manufacturers tend to buy batteries near the vehicle plant, which means facilities are needed in the UK to keep production in current locations including Toyota, Mini, Vauxhall and Jaguar. Land Rover.

Earlier this week, the Society of Engine Manufacturers and Traders warned that Britain needs 60GWh of battery plants just to keep up with the current size of the industry. At worst, with just one large-scale project in the country, more than 90,000 roles could be lost, he warned.

SMMT chief executive Mike Hawes said Nissan’s investment is “a true vote of confidence, but it’s still just one” of a number that needs to happen to safeguard the country’s extensive network of factories.

“It’s a very competitive industry and we need more than that,” he added.

British ministers have set aside £ 500 million to encourage investors to support the rapidly changing car industry, although the sector has warned that the sum is too small compared to the € 2.9 billion the EU is putting into disposition of its members.

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