Nissan (OTC:NSANY) announced Friday that the company has committed to invest 1.12 billion pounds ($1.4 billion) in its British manufacturing facility.
The substantial investment aims to produce electric variants of two current Nissan models, providing a significant lift to the UK's automotive sector. The plan also aligns with the Prime Minister's efforts to entice foreign capital into the country.
The Japanese automaker outlined plans to create electric versions of the Qashqai and Juke, produced in Sunderland, northeast England. The plan will require a total investment of up to 2 billion pounds, including a third battery plant in Britain and infrastructure projects partially financed by partners.
The project is expected to receive government support.
For years, Nissan has been producing its electric Leaf model in Sunderland and will continue production, sourcing batteries from a small plant located on the site.
In 2021, Nissan unveiled a substantial $1.4 billion investment plan aimed at constructing a second 9 gigawatt-hour (GWh) battery plant in Sunderland through a collaboration with Chinese partner Envision AESC.
This significant deal marks the commencement of Prime Minister Rishi Sunak's Global Investment Summit scheduled for next week. During this summit, Sunak aims to rekindle interest from international companies.
"Making the UK the best place to do business is at the heart of our economic plan," Sunak said in a statement on Friday.
Nissan’s investment in EVs comes despite the five-year delay to a ban on sales of new gas powered cars, which Sunak announced in September.