Nissan announced on Friday a £1.12 billion ($1.4 billion) investment to manufacture electric versions of two popular crossover models at its UK plant, providing a significant boost to the country's auto industry amid the transition to electric vehicles. The Japanese automaker disclosed that the electric adaptations of the Qashqai and Juke, currently produced at the Sunderland plant, would necessitate an investment of up to £2 billion in a third battery plant in the UK and associated infrastructure projects.

British Prime Minister Rishi Sunak lauded the investment as a substantial vote of confidence in the UK's automotive industry, emphasizing the government's commitment to making the UK an attractive business destination.

The automaker, Japan's third-largest, stated that it would reveal the names of the new electric vehicle (EV) models and the production launch schedules at a later date. Nissan's CEO, Makoto Uchida, emphasized the acceleration toward a new era for the company with the introduction of electric versions of its core European models. The Sunderland plant has been manufacturing Nissan's electric Leaf model for years, and this production will continue.

Nissan also announced a $1.4 billion investment plan in 2021 to build a second battery plant in Sunderland, boasting a capacity of 9 gigawatt-hours (GWh). This initiative was undertaken in collaboration with the Chinese partner, Envision AESC. It's noteworthy that Nissan already operates a small-scale battery plant in the UK, dedicated to supplying batteries for the Leaf model.

Nissan aims to offer only fully electric cars in Europe by 2030, a strategic move to align with the growing demand for electric vehicles. The decision follows Nissan's adjustment of its EV targets earlier in the year, pledging to launch 19 new EV models by 2030. This investment aligns with a broader trend in the industry, exemplified by India's Tata Motors, which announced a £4 billion investment in a UK EV battery plant to supply Jaguar Land Rover factories. Despite positive progress, industry experts emphasize the need for increased EV battery production capacity in Britain to sustain a viable and expanding auto industry.