Nissan Boosts UK EV Production with Massive Investment
Nissan is significantly increasing its investment in the UK, injecting up to £2 billion into electric vehicle (EV) production in Sunderland. This commitment will facilitate the manufacture of two new EV models, further solidifying the UK’s status as a leader in the automotive industry.
This substantial investment builds upon Nissan’s existing commitment to the UK market. In 2021, Nissan and its battery partner AESC announced a £1 billion EV hub. This latest announcement, which includes up to £1.12 billion in direct investment from Nissan, alongside wider investment in infrastructure, is a pivotal moment for the UK automotive industry. This will enable wider investment in infrastructure projects and the supply chain, including a new gigafactory.
The investment will protect thousands of jobs and supports Prime Minister Rishi Sunak’s key economic objectives. It will facilitate the transition toward more sustainable and affordable transportation with all-electric replacements for the well-known Nissan Juke and Qashqai models, in addition to the electric Leaf replacement promised back in 2021.
Nissan’s investment adds to the UK’s position as a global leader in Electric Vehicle manufacturing. This investment underscores the UK’s dedication to achieving net zero emissions. This investment builds on decades of success for the Nissan Sunderland plant.
A graphic showing the Nissan logo and electric vehicle information.
Further backing this sector, £15 million in funding has been awarded for a £30 million collaborative project led by Nissan. This project strengthens the technical expertise and R&D zero emission vehicle capabilities of the Nissan Technical Centre (NTCE) in Cranfield, Bedfordshire. The aim is to bring additional R&D spending to the UK.
This move also aligns with the launch of a new Investment Zone for North East England. This zone is predicted to generate over 4,000 new jobs within the first five years and will attract considerable private investment. The new zone, which will focus on advanced manufacturing and green industries, aims to create a hub for innovation and provide significant support, including tax incentives and infrastructure development.
With the UK’s commitment to support businesses, the government has made the Full Expensing scheme permanent. This will result in an effective annual tax cut of £11 billion for businesses investing in equipment. This, in turn, will help drive economic growth.
The Chancellor of the Exchequer, Jeremy Hunt, emphasized the announcement as a huge vote of confidence in the UK economy. The Business Secretary, Kemi Badenoch, stated the investment further shows the success of the government’s strategy for the automotive sector. Furthermore, the government’s Advanced Manufacturing Plan will enhance this progress.
The UK automotive sector contributes £71 billion annually to the economy. The announcement follows other success stories including Tata’s investment of over £4bn in a new 40 GWh gigafactory, BMW’s investment of £600m to build next generation MINI EVs in Oxford, Ford’s investment of £380 million in Halewood to make Electric Drive Units and Stellantis’ £100m investment in Ellesmere Port for EV van production.
The government is also providing substantial backing to the manufacturing sector. This includes £4.5 billion in strategic manufacturing sectors across the UK. Over £2 billion will be available for the automotive sector from 2025, supporting sustainable technology, batteries, and supply chains.
The government is preparing the UK’s first Battery Strategy that aims to build a competitive battery supply chain to support economic prosperity and Net Zero transition.
