The new Nissan gigafactory is a “strong indicator” of the United Kingdom’s post-Brexit future.
BREXIT BRITAIN is likely to receive a major boost as Nissan prepares to unveil plans for a new electric car gigafactory in Sunderland.
The upgrade will allow the company’s flagship plant produce more electric vehicles, resulting in the creation of 2,000 additional employment. The complex, which would be the UK’s largest gigafactory, might be operational by 2024.
The factory will be able to produce batteries for up to 200,000 electric vehicles each year.
The government is thought to have provided some financial assistance to Nissan in order to get the agreement done.
The new plant will be created in collaboration with Envision, a Chinese electric vehicle company that Nissan has collaborated with.
The new facility will focus on producing Nissan’s popular Leaf vehicles.
Nissan, on the other hand, is thought to be considering producing electric versions of the Qashqai because the petrol and diesel vehicles are already manufactured in Sunderland.
The decision, according to Jim Holder, editorial director of WhatCar?, is a “strong signal” of the country’s post-Brexit aspirations.
He went on to say that the increase in battery output was necessary under the new guidelines and might help consumers keep prices in check.
“The Sunderland battery plant is the UK’s second confirmed battery production site, demonstrating that carmakers and the government are committed to keeping the UK at the forefront of electric vehicle development and manufacturing,” he said.
“It’s also a powerful indicator of the country’s aspirations in the automotive sector in the post-Brexit global economy,” says the report.
“Without appropriate battery production capacity, the UK risks losing this status as well as violating the new ‘Rules of Origin’ framework, which will take effect in 2024.
“The framework aims to raise the proportion of UK and EU parts in vehicles sold, with those who do not follow the regulations incurring a 10% penalty.
“Because batteries make up such a large portion of the components in electric vehicles, carmakers who want to avoid tariffs must manufacture their own batteries.”
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The Society of Motor Manufacturers and Traders (SMMT) recently cautioned that the transition to electric vehicles is the industry’s “greatest challenge.”
The SMMT stated that it is collaborating with the government to bring more battery manufacturing to the UK.
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