UK signs GBP50 mil investment deal with JATCO, Nissan to build powertrain plant in Sunderland

The UK government has signed a GBP50 million ($61 million) investment deal with Japan Automatic Transmission Company and automaker Nissan to build a 3-in-1 electric vehicle powertrain manufacturing site in Sunderland, the government announced in a Jan. 16 statement.

It said the plant would be JATCO's first in the UK and Europe and it would produce 340,000 electric powertrains every year from 2026 for Nissan's nearby Sunderland plant.

Nissan in 2023 announced a GBP2 billion investment in the region to build EVs. The automaker plans for 100% EV sales in Europe by 2030.

"With the UK already being the largest EV market in Europe, this investment further bolsters the UK's domestic EV manufacturing capabilities and secures the UK's position as a world leader in the industry," the government said.

It said JATCO's total investment had been enabled by over GBP 12 million of government funding through the Automotive Transformation Fund, which was accessed through the Advanced Propulsion Centre UK, and aimed to unlock private investment in UK automotive design, development and manufacturing.

The government noted that, to date, the ATF and APC funding programs had leveraged over GBP6 billion of investment from the private sector, while the Autumn Budget confirmed over GBP2 billion for capital and research and development funding over five years for zero emission vehicle manufacturing and their supply chains.

"Building on the achievements of the ATF and APC programs, this long-term commitment is a vote of confidence in the UK's automotive industry, supporting investment and productivity growth across UK automotive," it said.

Business and Trade Secretary Jonathan Reynolds said the plant would boost the UK's "thriving" auto industry.

"The government is working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK and our modern Industrial Strategy will build on this legacy, bringing growth, jobs and opportunities to every part of the UK," he said.

JATCO CEO Tomoyoshi Sato said the company looked forward to supporting Nissan's EV36Zero project with its electric powertrains.

Alan Johnson, senior vice president - Manufacturing, Supply Chain and Purchasing for Nissan AMIEO - said: "Welcoming a key supplier to the Northeast of England provides a big boost to the efficiency of our supply chain."

In December, the UK government launched a consultation asking automotive and charging industries to share their perspectives on shaping the transition to zero-emission vehicles and reinstating the 2030 phase-out date for new internal combustion engine vehicles.

Battery electric vehicle sales in the UK reached a record 381,970 units in 2024, up 21.4% year over year and at a record 19.6% market share, according to January data from the Society of Motor Manufacturers and Traders.

Platts, part of S&P Global Commodity Insights, assessed battery grade lithium carbonate at $10,200/mt and hydroxide at $9,700/mt CIF Europe on Jan. 16, 2025, down 35% and 39% respectively since the start of 2024.