Nissan investing £1 billion in V36Zero EV hub

Partner Envision AESC to build Gigafactory alongside

Nissan is set to invest £1 billion Nissan in building what it calls EV36Zero, “a world-first EV manufacturing ecosystem”, according to the company. Located alongside the company’s Sunderland factory, the project sees Nissan partner with Envision AESC, a battery maker, and Sunderland City Council. Comprised of three interconnected initiatives, Nissan EV36Zero brings together electric vehicles, renewable energy and a 9GW of battery production. With plans for a new UK-made Nissan-branded crossover car model incorporated, the factory investment is also welcome news for the original equipment tyre business, which has been hampered by reduced production and factory closures across the country in recent years.

Nissan president and chief executive officer, 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.”

UK Prime Minister Boris Johnson commented: “Nissan’s announcement to build its new-generation all-electric vehicle in Sunderland, alongside a new gigafactory from Envision-AESC, is a major vote of confidence in the UK and our highly-skilled workers in the North East. Building on over 30 years of history in the area, this is a pivotal moment in our electric vehicle revolution and securing its future for decades to come.”

Building on Nissan’s 35 years of manufacturing in Sunderland, the projects announced today represent “more than 900 new Nissan jobs and 750 new Envision AESC jobs”

Envision AESC, the battery arm of global green tech company Envision Group, will deploy integrated AIoT smart technology to monitor and optimize energy consumption, manufacturing and maintenance at its new gigafactory, enabling it to rapidly increase production and provide batteries to power up to 100,000 Nissan electric vehicles a year.

UK Business Secretary Kwasi Kwarteng said: “…The cars made in this plant, using batteries made just down the road at the UK’s first at scale gigafactory, will have a huge role to play as we transition away from petrol and diesel cars and kick-start a domestic electric vehicle manufacturing base.”

A new-generation electric crossover

As part of the £1 billion announcement, Nissan will invest up to £423 million to produce a new-generation all-electric vehicle in the UK. Building on Nissan’s expertise in crossovers and the worldwide success of the Nissan LEAF, it promises next-generation vehicle styling, efficiency and battery technology, making the switch to electric driving even more accessible.

Designed for global markets, UK production will be exported to the European markets traditionally served by Nissan’s Sunderland plant. The new crossover will be built on the Alliance CMF-EV platform, with a forecasted production capacity of up to 100,000 units to be installed.

Next-generation EV batteries

Envision AESC already owns and operates Europe’s first battery plant in Sunderland, established in 2012 for the localisation of Nissan LEAF battery production. The factory’s UK team has nine years’ expertise from supplying batteries to the Nissan LEAF and eNV200, having produced enough cells, modules and packs to power over 180,000 electric vehicles in 44 countries, meeting global benchmark levels of quality, performance, safety, reliability and cost.

Supporting this new model allocation, Envision AESC will invest £450 million to build the UK’s first gigafactory on the International Advanced Manufacturing Park (IAMP), adjacent to the Nissan plant, powered by renewable energy and pioneering next-generation battery technology.

The formal planning process is about to begin for the new gigafactory, which represents an initial 9GWh plant, with potential future-phase investment of £1.8 billion by Envision AESC, generating up to 25GWh and creating 4,500 new jobs in the region by 2030, with potential on site for up to 35GWh. The new plant will increase the cost-competitiveness of EV batteries produced in the UK, including through a new Gen5 battery cell with 30 per cent more energy density which improves range and efficiency. This commitment will power Nissan’s new vehicles, supporting the continued localisation of vehicle parts and components with advanced technology. This will make batteries cheaper and EVs more accessible to a growing number of customers in the future.

Lei Zhang, founder and Chief Executive Officer of Envision Group, said: “Envision Group’s mission is to be the net zero technology partner of choice for global enterprises, governments, and cities. We are therefore delighted to be a part of EV36Zero with Nissan and Sunderland City Council. As part of this, Envision AESC will invest £450m in a new, cutting-edge, low-carbon gigafactory in Sunderland creating 700 new jobs. ,

“Growth in demand could bring future investment of up to £1.8bn, additional capacity of 25GWh and 4,500 jobs by 2030. This will put the North East at the heart of a new EV hub in the UK, collaborating on R&D around the whole battery lifecycle, from storage, to second life use, V2G smart charging and closed loop recycling.”

Nissan celebrates 35 years in the UK

Nissan started production in Sunderland in July 1986, 35 years ago this month. Since then, the factory has grown into the biggest plant in the history of the UK automotive industry, supporting 46,000 UK jobs.

Also based in the UK are Nissan’s European Design Centre in Paddington, London (NDE) and R&D Centre in Cranfield, Bedfordshire (NTCE), designing and engineering Nissan vehicles for customers across the region and beyond.

Current production in Sunderland includes the Nissan Qashqai, Juke and LEAF, most of which (70%) are exported to mainland Europe, with 20% sold in the UK and a further 10% exported to markets than span the globe, from South America to Australia, and from the Nordics to South Africa.