Japanese car giant to create thousands of new jobs in battery production
Nissan is set to announce a massive expansion of its battery production capacity in Sunderland. The move by the Japanese car manufacturer is expected to create thousands of jobs, both directly and along the supply chain. The move is a major shot in the arm for the British manufacturing sector, post-Brexit.
Situated in the northeast of England, the Sunderland plant is already responsible for the manufacture of the company’s Leaf electric car. The British government has also contributed to the project, although they have not disclosed the figures. The overall investment is expected to run into hundreds of millions.
An expanding market
Britain currently has a strong foothold in the manufacture of electric vehicles in Europe. However, a recent report by an influential environmental group, Transport and Environment, said that the country was at risk of slipping behind in the race to electrification.
In the report, the Brussels-based group noted that although British manufacturing accounted for 50% of Europe’s electric car manufacturing as recently as 2018, a lack of investment by manufacturers could see this figure slip dramatically, potentially as low as 4%.
The British Government has already announced that it will ban the sale of new diesel cars from 2030. It is hoped that the move by Nissan will be the forerunner for a new wave of investments aimed at keeping Britain at the forefront of the rapidly emerging market for electric vehicles.
Transport and Environment also noted that Nissan’s expansion plans still only accounted for a tiny fraction of the manufacturing capacity that has already received funding across the whole of Europe.
It is believed that the Sunderland facility will have a capacity of 6.5 Gigawatt hours. In comparison, there is already funding in place for 17 European battery plants that have an expected capacity of 474 Gigawatt hours.
According to industry insiders, the size of the plant is expected to be similar to that of the new Renault plant in Douai, France. Renault is already a major shareholder in Nissan, and the two companies are also partnered in a global manufacturing alliance.
UK/EU Trade Deal
As part of the post-Brexit trade deal, the UK is required to increase the manufacture of electric vehicle components by 2024. Most of the Nissan factory’s output is sold in Europe, and this move is partially driven by the need to fulfill the terms of the trade agreement. It is hoped that the new plant will be in production by this time.
The UK government is also believed to be pursuing other investment avenues as it seeks to meet the terms of the agreement. Vauxhall, part of the larger GM Group, is also involved in talks with the government. These talks are aimed at securing the production of electric vehicles at its Ellesmere Port plant. It is thought that these talks are going positively and an announcement is expected within the next few weeks.