Nissan Japan Advances Discussions with UK Government on Large-Scale Battery Factory Establishment in Sunderland

Nissan Motor showcased the electric car "Leaf" featuring the British flag "Union Jack" at the British Embassy in Tokyo, Japan, in December 2018.
Photo by Reuters Yonhap News

[Asia Economy Reporter Byunghee Park] Major foreign media reported on the 26th (local time) that discussions between Japan's Nissan Motor and the UK government on establishing a large-scale electric vehicle battery factory are making progress.

This is because the UK government, which needs to attract investment after leaving the European Union (EU), and Nissan, which aims to increase production of the best-selling electric vehicle in Europe, the "Leaf," have aligned interests. Nissan has had a long-standing relationship with the UK since completing its first factory there in 1986 and plans to make the UK a hub for overseas electric vehicle production.

The new factory will be built in Sunderland, UK, where a battery factory already exists. Currently, the Sunderland battery factory's annual production capacity is only 1.9 GWh (gigawatt-hours). Nissan plans to increase the annual production capacity of the new factory, expected to be completed by the end of 2024, to 6 GWh and ultimately to 18?20 GWh. The new factory is expected to have an annual production capacity of 200,000 battery electric vehicles and create thousands of jobs.

If the factory establishment is confirmed, the UK can somewhat make up for losing the site of Tesla's Gigafactory to Germany two years ago. The factory operation is expected to be handled by Invision, Nissan's Chinese battery supplier. Nissan had been producing batteries independently through a joint venture but sold its stake to China's Invision Group in 2019.

If the agreement between the UK government and Nissan is finalized, an official announcement is expected this summer. This is because the UK government likely wants to announce large-scale electric vehicle investments ahead of the 26th UN Climate Change Conference of the Parties (COP26) to be held in Glasgow, Scotland, this November. As the host country of COP26, it would be a case demonstrating its commitment to eco-friendly investments.

The UK government is exploring the possibility of establishing battery factories with several companies, and negotiations with Nissan are reportedly the most advanced.

There are also prospects that Tesla CEO Elon Musk, who recently visited the UK, might establish a battery factory in the UK. However, it is known that no discussions are currently underway between Tesla and the UK government.

The UK plans to gradually reduce sales of internal combustion engine vehicles by 2030. Additionally, with greenhouse gas reduction regulations tightening across Europe, electric vehicle sales in Europe are expected to increase significantly in the future.

This content was produced with the assistance of AI translation services.