The new site is set to create 183 new high-value jobs in the region and support over 400 in the wider supply chain. It will also establish JATCO’s first and only European plant and will produce 3-in-1 electric vehicle powertrains for Nissan’s neighbouring Sunderland plant.
Nissan is one of the largest UK-based vehicle manufacturers, employing around 6000 people across its Sunderland facilities, and today’s announcement builds on its £2 billion investment in the region in 2023 to build electric vehicles (EVs).
From 2026, JATCO aims to produce 340,000 electric powertrains – the equivalent of an engine for electric vehicles – per year to supply new generations of Nissan EVs. 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.
This is the latest in a tidal wave of investments announced this week, including a £4 billion investment by Malaysian company YTL in the UK over the next five years, looking to transform the greater Bristol area and delivering over 30,000 jobs across the UK. Over £14 billion of investment into the UK’s AI sector and thousands of new jobs have also been secured, since the Government’s AI Opportunities Action Plan was published earlier this week.
Since entering office, the Government said it has been focused on restoring economic stability, the foundation of growth, to give businesses the confidence to invest and expand in the UK – and today’s announcement is a major vote of confidence in the UK’s investment environment.
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The Minister for Investment, Baroness Gustafsson, will visit the North East today (January 16, 2025) to open the new facility and hear from senior officials from JATCO and Nissan about how this funding could help bolster the UK’s automotive industry’s transition to EVs and support economic growth, an integral part of the Government’s Plan for Change.
In a statement, 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 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.”
The investment has been enabled by the ATF, which 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.
Sunderland has an expanding manufacturing presence, with sites from Nissan and key battery manufacturer AESC. The value of inward FDI stock for the North East at the end of 2021 was £27.9 billion. The Government said that unleashing the full potential of the UK’s cities and regions is a core objective of its Industrial Strategy, and facilitating investments like this is central to achieving this goal.
