Nissan invests in the Sunderland production plant as its UK base for the production of lithium-ion batteries.

Carmaker Nissan has announced that Sunderland will be the UK base of its advanced lithium-ion battery production in Europe, with a second plant to be built in Portugal. 

This plan signifies a huge step in the Renault-Nissan Alliance commitment to producing batteries for its Zero Emission Mobility Program in Europe.

Both the UK and Portuguese governments will offer financial assistance and support in recognition of the valuable contribution such manufacturing plants will make to the national and regional economies – in terms of employment, the automotive and associated industries along with the sales of zero emission cars across Europe.

Prime Minister Gordon Brown said of the proposal: “This investment is hugely significant as we embark on Building Britain’s Future, our plan for recovery and beyond, powered by low carbon, high technology industries, products and services.”

Nissan is the UK’s largest vehicle exporter and its plant in Sunderland currently employs around 4,200 workers, and produced a record 386,000 cars in 2008.

The plan for the plant is to produce around 60,000 lithium-ion batteries for use in the electric vehicles, which will be produced by the Renault-Nissan Alliance. Nissan said in its statement that it will continue to liaise with governments across Europe with the intention of identifying other possible sites to produce the batteries.

UK Business Secretary, Peter Mandelson, commented: “The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing the UK’s place as a global leader in high-tech manufacturing and automotive industries.”

TUC General Secretary Brendan Barber welcomed the creation of hundreds of up to 350 new jobs in the area: “This is an excellent initiative. It combines active industrial policy and environmental transformation, pointing the way to the kind of economy we need to build after the recession.”

Nissan Senior Vice President for Manufacturing, Europe, Trevor Mann, said: “Today’s announcement potentially marks another important milestone in establishing low carbon transport as a viable and attractive alternative across the North East and beyond, and reinforces Nissan’s commitment to lead the world in the mass marketing of zero emission vehicles.”

Last week, Nissan had announced that it had begun a trial of lithium-ion batteries at its Zama Operations Centre in Tokyo. The batteries would be used for the company’s electric car, as well as Nissan’s original hybrid car, which will be introduced in the US and Japan in 2010, ahead of a global rollout in 2012.