Nissan ramps up its UK EV business with a $2.5 billion investment

• Nissan announced that it would invest billions in its UK EV business.
• The Japanese company said it would build three EV models in its UK factory as part of the deal.
• The investment provides a much-needed boost to the UK’s auto industry. 

The Japanese car manufacturer Nissan announced on Friday that it would invest £2 billion, which is around $2.5 billion, in its electric vehicle (EV) business in the UK.

The company said that it would build three EV models at its Sunderland plant in the northeast of England and that it would also build a third battery factory as part of the deal.

Electric versions of the Qashqai, Juke, and LEAF models will be produced in the UK, the company said, adding that it was “great news” for its 7,000 UK employees.

It takes Nissan’s total proposed investment in the region to £3 billion, or around $3.8 billion, after the company already pledged $1 billion.

The news comes following the company’s September announcement that it planned to sell only electric vehicles in Europe by 2030.

“Electric vehicles are at the heart of our plans to achieve carbon neutrality. With electric versions of our core European models on the way, we are accelerating towards a new era for Nissan, for industry and for our customers,” Nissan’s CEO Makoto Uchida said while announcing the plans to employees.

It’s welcome news for an industry that has struggled in the wake of the UK’s 2016 vote to leave the European Union. The industry has also been boosted this year by pledged investments from Jaguar and Land Rover owner Tata and BMW.

British Prime Minister Rishi Sunak also hailed the news, saying: “Making the UK the best place to do business is at the heart of our economic plan.”

“We will continue to back businesses like Nissan to expand and grow their roots in the UK every step of the way as we make the right long term decisions for a brighter future,” he added.

Nissan did not immediately respond to Business Insider’s request for comment, which was made outside of normal working hours.