Japanese car manufacturer Nissan has said that the trade deal reached between the EU and UK has kept its Sunderland plant secure for the long term.
Nissan currently employs 6000 people directly at the plant, and supports another 70,000 in the supply chain.
At present, the batteries for its electric cars are brought in from Japan, but the manufacturer is now hoping to move battery production closer to the Sunderland plant.
Nissan had warned last year that if a trade deal was not reached between the EU and UK, then their Sunderland plant would become “unsustainable” due to tariffs.
Ashwani Gupta, Nissan’s chief operating officer, said: "The Brexit deal is positive for Nissan. Being the largest automaker in the UK we are taking this opportunity to redefine auto-making in the UK.
"It has created a competitive environment for Sunderland, not just inside the UK but outside as well.
"We've decided to localise the manufacture of the 62kWh battery in Sunderland so that all our products qualify [for tariff-free export to the EU]. We are committed to Sunderland for the long term under the business conditions that have been agreed."
The firm’s announcement was welcomed by Business Secretary Kwasi Kwarteng: "Nissan's decision represents a genuine belief in Britain and a huge vote of confidence in our economy thanks to the certainty our trade deal with the EU delivers.
"For the dedicated and highly-skilled workforce in Sunderland, it means the city will be home to Nissan's latest models for years to come and positions the company to capitalise on the wealth of benefits that will flow from electric vehicle production."
Professor David Bailey of Warwick University also welcomed the news: "This is obviously good news and will help the Nissan Leaf avoid any future tariffs, but we are going to need to see a lot more investment in battery production in the UK if we are to preserve the UK as a car manufacturer and exporter.”
Andy Palmer, chairman of electric bus manufacturer Switch Mobility, went further and warned that unless the government acted soon to encourage more investment in batteries, 800,000 UK jobs were at risk.
"Without electric vehicle batteries made in the UK, the country's auto industry risks becoming an antiquated relic and overtaken by China, Japan, America and Europe,” Palmer said.
