Car giant Nissan is planning to build one of the world's biggest battery plants in Sunderland, according to reports.
Nissan is said to be in advanced talks with the Government to build a battery gigafactory next to its North East site, in a move that would make the 海角视频 the company's biggest electric car producer outside of Japan.
The claims, published today in the Financial Times, claim that talks began after Britain's Brexit deal with the EU and that a full announcement is set to be made in the summer, ahead of the COP26 climate summit, which is to be held in Britain this year.
A feasibility study was announced in November to investigate the creation of the gigafactory, which Nissan hoped would win the backing of the Government.
Nissan did not confirm whether the plans had been approved.
The company said: "Having established EV and battery production in the 海角视频 in 2013 for the Nissan Leaf, our Sunderland plant has played a pioneering role in developing the electric vehicle market. As previously announced, we will continue to electrify our line-up as part of our global journey towards carbon neutrality, however we have no further plans to announce at this time."
A spokesman for the Department of Business, Energy and Industrial Strategy (BEIS) said: “We are committed to ensuring the 海角视频 continues to be one of the best locations in the world for automotive manufacturing through a major investment programme to electrify our supply chain, create jobs and secure a competitive future for the sector.
“To support the auto sector’s transition to electric vehicles, we are dedicated to securing Gigafactories, and continue to work closely with investors and vehicle manufacturers to progress plans to mass produce batteries in the 海角视频.”
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It is thought that other gigafactories are being considered by the Government but Nissan's is the frontrunner.
Under the plans, the factory would be created at the nearby Envision AESC plant, which lies next to Nissan's Sunderland factory, and produces batteries for the Nissan Leaf.
The existing plant was previously a joint venture between Nissan, but it was sold to Envision in 2019.
The FT claims the new facility would be run by Envision and would produce 200,000 battery cars a year along with thousands of jobs. It also claimed that Nissan wants to secure tens of millions of pounds from the Government for the project, including a way to lower its energy costs for producing the batteries.
If the project is approved, the factory would open towards the end of 2024 and would initially produce 6 gigawatt hours (GWH) of battery capacity per year during the first phase of the project. This would increase to between 18 and 20GWh once the project is complete.
Envision's current site currently has a capacity for 1.9GWh.
Envision also declined to confirm whether the plans had been approved.
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The company said: "Envision AESC can confirm that following acquisition of the 海角视频’s only battery plant in 2019 we have been supplying batteries to Nissan’s Sunderland plant to produce the Nissan Leaf. We have no further plans or comments to make at this time."
The plans to build the battery gigafactory come at a time when the 海角视频 Government has banned the sale of petrol and diesel cars from 2030. Increased production of car batteries will create a bigger supply of electric cars.
With Nissan located in the North East, the region has long been a powerhouse of British car manufacturing, with automotive companies and supply chain firms calling the region home. It has also become a hub for battery manufacturing and recently saw the launch of Britishvolt, a new company dedicated to researching and developing lithium-ion batteries.
Commenting on the news that the new gigafactory could soon be built in Sunderland, Britishvolt said: "Britishvolt, the 海角视频’s foremost investor in lithium-ion battery cell technology and R&D, are encouraged by news reports of potential further gigafactory investments in the 海角视频.
"It underscores the importance of lithium-ion battery facilities to keep up with the growing demands from OEMs as they transition to electrification. It is also positive to understand that 海角视频 Government is taking battery production seriously, on the road map to net zero, and are backing this up by providing funding in line with that provided in the EU for its battery industry development."