Nissan has begun production of the next-generation LEAF at its Sunderland plant, in a £450 million investment hailed by ministers as a major boost for the UK’s automotive industry and
green economy.
The launch marks the first new high-volume electric vehicle to be produced in the UK since 2020 and secures around 6,000 jobs at Nissan’s Wearside site, alongside thousands more across the supply chain. More than £300 million of the investment has been directed into Nissan’s UK operations.
Industry Minister Chris McDonald visited the Sunderland plant on Monday to mark the start of production, describing the new LEAF as a significant step forward in the UK’s transition to electric vehicles and a clear signal of confidence in the government’s modern Industrial Strategy.
The investment comes as the government channels £4 billion into the automotive sector through its Industrial Strategy – the largest public investment in the car industry since the post-war era – aimed at accelerating electrification, battery production and advanced manufacturing.
Business and Trade Secretary Peter Kyle said Sunderland remained “the beating heart of the UK’s automotive industry”, adding that Nissan’s commitment represented a major vote of confidence in both the North East and the wider UK economy.
“This £4 billion investment into our world-leading auto sector is driving growth, innovation and jobs across the country,” he said.
The government has worked closely with Nissan and its partners to position Sunderland as a hub for EV manufacturing, strengthening domestic production capabilities and supporting long-term economic growth.
Chris McDonald said the decision to build the new LEAF in the UK reinforced the country’s global manufacturing credentials. “This will strengthen the UK’s position as a destination of choice for investment and help secure the future of our automotive sector for decades to come,” he said.
Alongside the LEAF launch, the government announced two new regional EV supply chain pilot programmes in partnership with the North East and West Midlands metro mayors. Delivered under the DRIVE35 programme, the pilots aim to boost supply chain resilience, increase domestic production and support the transition to zero-emission technologies.
Nearby, battery manufacturer AESC has opened a new 12GWh gigafactory to supply Nissan, underlining the growing EV ecosystem around the Sunderland plant and creating further jobs and investment opportunities in the region.
Adam Pennick, vice president of manufacturing at Nissan Sunderland Plant, said the workforce was “proud and excited” to be building the new LEAF. “The skills, expertise and teamwork of our people have powered Sunderland’s success and demonstrate our leadership in electrification,” he said.
Consumers will be able to save £3,750 on the new LEAF through the government’s Electric Car Grant, which ministers say is helping households switch to electric vehicles while supporting a sector that employs 133,000 people directly and a further 320,000 across the wider economy.
The launch follows the government’s publication of its Industrial and Trade Strategies and the securing of new trade deals with the US, India and the EU, designed to reduce tariffs, open up export markets and reinforce the UK’s position as a leading destination for automotive investment. Photo by Kakidai, Wikimedia commons.