Nissan to build UK gigafactory as part of GBP1 billion EV Hub

Automaker Nissan has announced a GBP1 billion ($1.4 billion) investment in its Electric Vehicle Hub, EV36Zero, in Sunderland, UK, which will include building an initial 9 GWh gigafactory with battery producer partner Envision AESC.

The company said July 1 that the EV Hub would combine EVs, renewable energy and battery production to create an EV manufacturing ecosystem around its Sunderland plant to drive carbon neutrality, and modernize and expand Nissan's production capability in the UK.

Envision will invest GBP450 million in the gigafactory, which will be located on the International Advanced Manufacturing Park (IAMP), adjacent to the Nissan automotive plant, be powered by renewable energy and use next-generation battery technology to power up to 100,000/year Nissan EVs.

Nissan said the formal planning process was about to start, with the potential to increase capacity to 25 GWh by 2030 with future-phase investment of GBP1.8 billion from Envision, although the site had the potential to reach up to 35 GWh.

With the UK planning to ban the sale of new gasoline and diesel cars by 2030, there has been much made of the urgent requirement for more gigafactories in the country.

S&P Global Platts reported in June that the government was in talks with six companies about building gigafactories to meet future EV demand, with previously only Britishvolt having firm plans to build a 30 GWh gigaplant in Blythe, Northumberland.

Kwasi Kwarteng, UK secretary of state for business, energy and industrial strategy, said on a BBC Radio 4 interview July 1 that the UK government had "committed some measure of support" to the Nissan gigafactory and that the government was in a number of conversations with people who want to invest in the UK in this area.

"It's no secret that across the world governments are seeking to attract what is a once in a generation opportunity... and capital to build these gigafactories to build EVs.. we have a mission to try to land gigafactories in the UK because of the jobs and economic opportunities they provide. There is a lot more to do and this is a welcome first step," Kwarteng said.

According to car industry estimates, the UK might need up to 60 GWh production capacity to meet its 2030 targets on EV usage, but is currently expected to have only 12 GWh capacity in place by 2025, compared to 164 GWh capacity foreseen in Germany.

Kwarteng didn't accept suggestions that the UK was falling behind other European nations in terms of gigafactory construction.

"This is a 100% positive story," he said.

Nissan said that the new gigafactory would increase the cost-competitiveness of EV batteries produced in the UK, including through a new Gen5 battery cell with 30% more energy density that improved range and efficiency.

"This commitment will power Nissan's new vehicles, supporting the continued localization 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," it said.

Envision already operates a 1.7 GWh battery plant in Sunderland, established in 2012 for the local production of batteries for the Nissan LEAF, which has produced enough cells, modules and packs to power over 180,000 EVs.

100% renewable energy

The new gigafactory will be fully powered by renewable energy, with Sunderland City Council leading a project that aims to deliver a 100% renewable "Microgrid" for the EV Hub that should save 55,000 mt/year of carbon.

The renewable energy project is estimated to require around GBP80 million of investment and includes plans for a 1 MW battery storage system using second-life Nissan EV/Envision AESC batteries.

The existing Nissan wind and solar farms are planned to be incorporated with as many as ten new solar farms to be created, with an anticipated 132 MW generation.

These will have a direct connection to renewable energy from the UK grid to ensure firm supply to Nissan and other automotive companies located on the IAMP.

EV investment

Nissan will invest up to GBP423 million, as part of the GBP1 billion, to produce 100,000 units/year of a new crossover EV at the Sunderland plant, which will use the Alliance CMF-EV platform.

The new EVs will be manufactured in the UK and be exported to the European markets traditionally served by the Sunderland plant.

Nissan added that there were also other additional infrastructure projects that would enable the creation of the new EV Hub, taking the total initial investment above GBP1 billion.

The EV36Zero projects represent 6,200 jobs at Nissan and its UK suppliers, including more than 900 new Nissan jobs and 750 new Envision jobs at the new gigafactory.

Energy union GMB national energy officer Gary Carter said the Sunderland plant expansion was a "vital step in UK's journey to net zero" and would help ensure a green future for the automotive sector.