Nissan is to invest £1.12 billion ($1.4 billion) to build electric versions of two of its crossover models at the company's plant in north-east England, with money going into infrastructure and supply chain development.
The project includes a new gigafactory to produce batteries, bringing the total investment to £2 billion.
The Japanese car maker has plans to make electric versions of its Qashqai and Juke models at its plant in Sunderland, where its fully electric Leaf vehicle has been in production for several years.
The plan will support the future of Nissan’s 7,000 employees in the UK, as well as 30,000 jobs in the wider supply chain.
'At the heart' of the future vision
Nissan president and chief executive Makoto Uchida said the investment put the Sunderland plant "at the heart" of the company's future vision.
"It means our UK team will be designing, engineering and manufacturing the vehicles of the future, driving us towards an all-electric future for Nissan in Europe," he added.
British Prime Minister Rishi Sunak said the investment was "a massive vote of confidence in the UK's automotive industry".
"Making the UK the best place to do business is at the heart of our economic plan," he said.
The government announced it would put £15 million towards the funding to the Nissan Technical Centre in Cranfield, Bedfordshire, to boost research and development of zero-emission car technology.
By 2030, Nissan plans to offer only fully electric vehicles in Europe.
Electrifying investment
The move by Nissan comes months after India's Tata Motors announced it would invest £4 billion in an EV battery centre in the UK to supply its Jaguar Land Rover factories.
Other car makers have also announced investments to make EVs in the UK, including £600 million from BMW to build next-generation Minis in Oxford, Ford’s plans to spend £380 million in Halewood to make electric drive units and Stellantis’s £100 million investment in Ellesmere Port to produce electric vans.
Nissan has a long-standing relationship with north-east England – it originally built a factory there in 1986, which is now one of Europe's largest car plants.
The Sunderland site has produced more than 11 million vehicles.
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