Nissan asking for taxpayer funding to build gigafactory in Sunderland

Nissan says the plant could produce batteries for up to 200,000 cars per year

Nissan (TYO:7201) is hoping to secure support from the UK government to build a “gigafactory” in Sunderland in order to manufacture batteries for electric vehicles.

The Japanese company is in the later stages of talks to construct a plant that could produce batteries for up to 200,000 cars per annum, creating thousands of jobs in the process.

Nissan’s plan comes ahead of the government’s oncoming ban of petrol and diesel cars in the UK, which is expected to create a dramatic rise in the sale of electric vehicles.

The Faraday Institution, a research organisation with a focus on batteries for cars, estimates that the UK will need eight gigafactories by 2040 in order to meet demand, The Times reported.

Nissan said: “Having established [electric vehicle and] battery production in the UK in 2013 for the Nissan Leaf, our Sunderland plant has played a pioneering role in developing the electric vehicle market.”

“As previously announced, we will continue to electrify our line-up as part of our global journey towards carbon neutrality. However, we have no further plans to announce at this time.”

A spokesman for the Department for Business, Energy & Industrial Strategy, commented: “We are dedicated to securing gigafactories and continue to work closely with investors and vehicle manufacturers to progress plans to mass produce batteries in the UK.”

Ofgem, the UK energy market regulator, outlined on Monday its plan to invest £300m in over 200m infrastructure projects to ready the UK for the future of electric transport.

The plans will come into action over the next two years and is part of a wider £40bn project to move the UK to a system that uses low-carbon transport and heating. 

Boris Johnson has previously confirmed plans to forbid the sale of petrol and diesel cars from 2030 in order to reduce its emissions to net-zero by 2050. However, the country may well need to upgrade its infrastructure significantly to support the future influx of electric vehicles.