Nissan launches £450m next-generation LEAF in major vote of confidence in UK’s Industrial Strategy

• UK's largest car plant transformed with launch of new generation EV, supporting 6,000 jobs and boosting economic growth.
• Industry Minister Chris McDonald will visit site and hail the new LEAF as major step forward for the auto sector's EV transition and green economy.
• Start of production comes as government's modern Industrial Strategy is delivering £4 billion into the automotive sector – the biggest investment into the car industry since the post-war era.

In a huge boost to the UK economy and auto industry, car manufacturing giant Nissan has begun production of the next generation LEAF in Sunderland - making it the first new high volume electric car to be produced in the UK since 2020. 

Nissan has invested more than £450 million into manufacturing the new LEAF at their Wearside plant - including over £300 million directly into the firm's UK operations – supporting 6,000 jobs and thousands more in the supply chain. 

Today [16 December], Industry Minister Chris McDonald will attend the launch in Sunderland, where he will hail the start of production as a major boost to both the North East and the automotive sector, a step which underlines the UK's position at the forefront of manufacturing green technologies.  

This latest development builds on the biggest government investment into the UK's car industry of the post-war era, with £4 billion of funding from the modern Industrial Strategy going towards accelerating the electrification of vehicle plants and investment in batteries, electric motors and power electronics. 

Business and Trade Secretary Peter Kyle said: 

Sunderland is the beating heart of the UK's automotive industry, and Nissan's investment is a major commitment to the North East and a huge vote of confidence in our economy. 

Through this government's modern Industrial Strategy, we're delivering £4 billion into our world leading auto sector - the biggest investment into the car industry since the post-war era - driving growth, innovation and jobs across the country.

Government has worked closely with Nissan and their partners to transform Sunderland into an EV manufacturing hub, strengthening the nation's domestic EV manufacturing capabilities and boosting economic growth. 

Industry Minister Chris McDonald said: 

We're proud of our historic car industry, so I'm delighted that Nissan is producing the new LEAF in Sunderland. This will strengthen the UK's position as a global leader for manufacturing and as the destination of choice for investment. 

This government has taken decisive action to back the automotive sector through our modern Industrial Strategy, securing new trade deals and creating export opportunities, supporting UK manufacturers to safeguard jobs and helping to secure the future of the sector for decades to come.

Through the Industrial Strategy, the government plans to cluster EV manufacturing across growth areas. Along with the introduction of the new LEAF, the government is announcing the launch of two new regional EV supply chain pilots in partnership with the North East and West Midlands Metro Mayors.  

Implemented under DRIVE35, these programmes will strategically boost growth, enhance UK supply chain resilience and increase domestic production in the transition to zero emission technologies. 

Just over the road from the plant, AESC has opened a new 12 GWh gigafactory which will supply batteries for Nissan, showcasing the power of investment in boosting the supply chain through new jobs and opportunities in the region.  

Adam Pennick, Vice President, Manufacturing, at Nissan Sunderland Plant said:  

Nissan has invested into our state-of-the-art plant to build the EVs of the future and there is huge pride and excitement in our team to be building this brilliant car in Sunderland. 

The skills, expertise and team-work of our people have powered Sunderland's success, and the transformation of our plant for new LEAF demonstrates our leadership in the journey to electrification.

Drivers can save £3,750 off the new Nissan LEAF thanks to the government's Electric Car Grant which is putting thousands of pounds back in families' pockets when they decide to make the switch. The scheme is backing the UK's automotive industry, a key sector identified in the UK's modern Industrial Strategy, which supports 133,000 jobs in the UK, and a further 320,000 jobs in the wider economy.

This moment follows the government launching both the Industrial and Trade Strategies and securing three trade deals with the US, India and EU – supporting the auto sector by reducing tariffs and creating new export opportunities – whilst cementing the UK's position as a top investment destination.  

Notes to editors: 

• Through the government's modern Industrial Strategy's £2.5 billion DRIVE35 programme, an additional £1.5 billion investment was announced in the Budget, bringing total capital support to an unprecedented £4 billion until 2035.
• The ECG was launched earlier this year and is making it cheaper and easier to own an electric vehicle, with over 40,000 people benefiting from the grant so far.