The £1bn project, called Nissan EV36Zero, is centred on the company's factory in Sunderland and will bring up to represent 6,200 jobs at Nissan and its UK suppliers, including more than 900 new Nissan jobs and 750 new jobs at a new smart, low-carbon battery plant, being developed by Envision-AESC.
Comprised of three interconnected initiatives, Nissan EV36Zero brings together electric vehicles, renewable energy and battery production, setting a blueprint for the future of the automotive industry.
Envision-AESC already runs what was Europe's first battery plant, which opened in Sunderland in 2012 to produce batteries for the Nissan LEAF, the company's best-selling all-electric model. As part of Nissan EV36Zero, Envision AESC will invest £450 million to build the UK’s first gigafactory (artist's impression pictured) on the International Advanced Manufacturing Park (IAMP), adjacent to the Nissan plant, powered by renewable energy and pioneering next-generation battery technology.
The initial gigafactory will have a capacity of 9GWh. However, there is the potential for future-phase investment of £1.8bn by Envision AESC, generating up to 25GWh and creating 4,500 new high-value green jobs in the region by 2030, with potential on site for up to 35GWh.
Renewable 'microgrid'
Underpinning the entire project is a commitment from Sunderland City Council to deliver a 100% renewable electricity ‘Microgrid’ that will save 55,000 tonnes of carbon annually.
With the ability to incorporate the existing Nissan wind and solar farms, initial plans suggest there could be as many as ten solar farms created, with an anticipated 132MW generation, and with a direct connection to renewable energy from the UK grid for ‘firm’ supply to Nissan and automotive companies located on the IAMP. Plans will continue to be developed in close discussion with potential private sector green investors.
The first-of-its-kind project represents an £80m investment and includes plans for a 1MW battery storage system using second-life Nissan EV/Envision AESC batteries, which will also allow for excess energy generated during daylight hours to be captured and used at another time, helping to balance demand on the grid. Additional infrastructure projects enabling the creation of the new EV Hub take the total initial investment above £1bn.
Reaction
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.
“Our announcement today comes out of lengthy discussions held within our teams, and will greatly accelerate our efforts in Europe to achieve carbon neutrality. The experience and know-how gained through the project announced today will be shared globally, enhancing Nissan’s global competitiveness.”
Prime Minister Boris Johnson said: “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.
“This is a pivotal moment in our electric vehicle revolution and securing its future for decades to come. Commitments like these exemplify our ability to create hundreds of green jobs and boost British industry, whilst also allowing people to travel in an affordable and sustainable way so we can eliminate our contributions to climate change.”
Unveiling Nissan EV36Zero at the Sunderland Plant, Nissan’s Chief Operating Officer, Ashwani Gupta, said: “This is a landmark day for Nissan, our partners, the UK and the automotive industry as a whole. Nissan EV36Zero will transform the idea of what is possible for our industry and set a roadmap for the future for all.”
Dominic Tribe, director and automotive sector specialist at management consultancy, Vendigital, said: “These plans to create the UK’s first ever large-scale lithium battery plant are not only a major milestone for the automotive sector, but also a seal of approval for UK industry. At a time when many local communities are facing financial struggles, the creation of hundreds of jobs will also come as welcome news.
“Nissan’s decision to bring its battery manufacturing capabilities in-house is a neat solution for shoring up its supply chain and is also proof that this approach can make economic sense. Manufacturing its own batteries will provide the carmaker with full control over its intellectual property, while enabling it to manage capacity and outputs. EV batteries are large and heavy items, so switching to a shorter, localised supply chain could also help Nissan to reduce its tariff and logistics costs.
“The entire automotive sector is tackling the puzzle of how to scale up to meet growing demand for electric cars in a cost-efficient way. In order to achieve the Government’s legal requirement to phase out the production of new petrol and diesel cars by 2030, much more investment in gigafactories will be required and Nissan won’t be the only UK OEM to take this approach.”
