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Back to Motoring news

Motoring news

Nissan to produce electric car batteries in UK

20/07/2009

Nissan is set to manufacture electric car batteries in the UK in a move that could generate £200m investment over the next five years.

Up to 350 new jobs are expected to be created at the company's Sunderland factory, as the region becomes the focus for the UK's first Low Carbon Economic Area, specialising in ultra-low carbon vehicles.

The Government says it intends to establish a training centre specialising in the manufacture and maintenance of ultra-low carbon vehicles, along with a research and development centre for the associated technology.

And there are hopes that the production of lithium-ion rechargeable batteries could lead to the area manufacturing electric cars for the European market.

Prime Minister Gordon Brown pledged to work with the company in the future "to ensure this happens".

The news comes just six months after the automotive giant announced it was slashing 1,200 jobs at its Sunderland plant.

Business Secretary Peter Mandelson told BBC Radio Four's Today Programme that both he and Prime Minister Gordon Brown welcomed the investment, and confirmed that Nissan would benefit from the Government's £2.3 billion Automotive Assistance Programme announced in January.

"It's a boost for our hard-hit car manufacturers and their workers and retailers," Lord Mandelson said.

"But it's also, I think, an important advance for our low carbon industrial strategy, and also our ambition to become the leading manufacturer of electric vehicles in Europe."

Last week competitor Toyota announced it would begin production in the UK next year of a full hybrid version of its Auris hatchack.