Nissan confirms plans for UK’s first gigafactory

The deal will see the Japanese company plough £423 million into EV production at the Sunderland site, where it has had manufacturing operations for over 30 years. Chinese battery producer Envision AESC is spending £450m building a new low-carbon battery factory next door, which will deliver power packs for the vehicles.

In addition, Sunderland council is investing £80m to develop a “microgrid” of solar and wind farms to power the energy-intensive factories with green power, which will include utilising batteries from old EVs.

Envision AESC already owns and operates Europe’s first battery plant in Sunderland, established in 2012 for the localization of Nissan LEAF battery production. The company said the formal planning process is about to begin for the new gigafactory, which represents an initial 9GWh plant, with potential future-phase investment of £1.8bn by Envision AESC, generating up to 25GWh by 2030, with potential on site for up to 35GWh.

Nissan President and CEO, 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, but also the use of on-board batteries as energy storage and their reuse for secondary purposes.”

The company said the projects represent 6,200 jobs at Nissan and its UK suppliers, including more than 900 new Nissan jobs and 750 new Envision AESC jobs

Nissan reported the new plant will increase the cost-competitiveness of EV batteries produced in the UK, including through a new Gen5 battery cell with 30% more energy density which improves range and efficiency.

The company is to produce a new-generation all-electric vehicle in the UK. Described as a “crossover”, with next-generation vehicle styling, efficiency and battery technology, Nissan said more details, including pricing and technology, will be released closer to the car’s sales launch. Designed for global markets, UK production will be exported to the European markets traditionally served by Nissan’s Sunderland plant.

Prime Minister Boris Johnson heralded Nissan’s decision as “a pivotal moment in our electric vehicle revolution and securing its future for decades to come.”

“Full throttle”

Mike Hawes, SMMT chief executive, welcomed the announcement of new investment into battery production in Sunderland, but cautioned that the government needed to do more to ensure the UK automotive industry remains competitive.

“If we are to build one million electric vehicles by 2030, however, we need more such commitments, with at least 60 GWh of gigafactory capacity in this country by the end of the decade. The future competitiveness of our industry depends on securing these investments but also wider support for manufacturing. “We need a Build Back Better Fund to help manufacturing transformation, as well as a plan for charging infrastructure that will assure consumers to make the switch to these vehicles,” Hawes said.

These suggestions are among 12 policy proposals set out in a new SMMT report, “Full Throttle: Driving UK Automotive Competitiveness” which outlines the steps it says the government should take to ensure the UK retains a major role in vehicle manufacturing.

Among these are a commitment to support development of a fuel cell gigafactory with 2GWh capacity to support cars, heavier vehicles and rail units by 2030, and to making the UK a global leader in developing, testing, trialling and deploying Connected and Automated Vehicle (CAV) technology.

The SMMT also wants the government to allow net zero critical industries, such as manufacturers of low carbon, hydrogen and battery vehicles, to access the same benefits and compensation schemes as energy intensive industries and get more support within the UK Emission Trading Scheme (ETS), and to fund trial and demonstration projects to explore the use of hydrogen during manufacturing.

In addition, the organisation is seeking a holistic infrastructure strategy to ensure that at least 2.3 million public charging points are in place by 2030, and says the government should commission an independent review to consider the long-term future of fuel duty and CO2 based taxes like vehicle excise duty in a decarbonised sector.

It is also calling for the government to continue Plug-in Vehicle Incentives beyond their current term and exempt Ultra Low Emission Vehicles from taxation for the next five years.

Full Throttle: Driving UK Automotive Competitiveness