Nissan and the Japan Automatic Transmission Company (JATCO) have secured a £50m investment deal to create a new manufacturing plant in Sunderland in partnership with the UK government.

The new site will produce electric vehicle powertrains for Nissan’s neighbouring Sunderland plant

The new site will be JATCO’s first UK and European plant, and will produce electric vehicle powertrains for Nissan’s neighbouring Sunderland plant.

The announcement builds on Nissan’s work to invest £2bn in its EV36Zero hub to build future all-electric versions of its flagship Qashqai and Juke crossovers, along with the next-generation Leaf.

From 2026, JATCO, which is 75% owned by Nissan Motor Company, aims to produce 340,000 electric powertrains per year to supply the new-generation EVs.

Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan AMIEO, said: “This is a fantastic step forward for our world-first EV36Zero plan.

“Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future.”

The new site will be officially opened by Minister for Investment Baroness Gustafsson later today (16 January).

Tomoyoshi Sato, CEO of JATCO, commented: “I am so proud to officially open JATCO UK in the North East of England. And I am very grateful for the support of the UK government, Sunderland City Council, and all others involved in the establishment of JATCO UK, and look forward to supporting Nissan’s EV36Zero project with our electric powertrains.”

Nissan is one of the largest UK-based vehicle manufacturers, employing around 6,000 people across its Sunderland facilities, and the new investment deal will further this by creating 183 new jobs in the region and supporting more than 400 in the wider supply chain.

The Government hailed the announcement as a major vote of confidence in the UK’s investment environment and said the government funding would help bolster the UK’s automotive industry’s transition to electric vehicles.

Business and Trade Secretary Jonathan Reynolds said: “Sunderland is the beating heart of the UK’s automotive industry. Today’s announcement is a massive vote of confidence in the UK economy and this government’s plans to make Britain the destination of choice for investment.

“Not only will this boost our thriving auto industry, but it will help secure hundreds of jobs across the North East.”

The investment has been enabled by the Automotive Transformation Fund (ATF) and follows the Autumn Budget confirmation of over £2bn for automotive transformation funding and continued EV tax incentives as part of the Government’s modern Industrial Strategy. The ATF funding delivers capital and R&D funding over five years for zero-emission vehicle manufacturing and their supply chains. Funding is accessed through the Advanced Propulsion Centre UK (APC), and aims to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero-emission technology.

Julian Hetherington, automotive transformation director at the APC, said: “I am delighted that the Automotive Transformation Fund has been able to contribute to and unlock significant private investment from JATCO who bring high quality and advanced technology to an already successful automotive region.

“Our support is a reinforcement of the UK’s continued commitment to the extended localised supply chain for low-carbon industries.”