NISSAN is investing £3 billion in its Sunderland factory in the UK to build three new electric vehicles as well as a gigafactory for battery production at the site.

The plans see the Japanese company's EV36Zero hub at Sunderland - Nissan's blueprint for future manufacturing - consisting of three electric vehicles as well as three gigafactories directly securing 7,000 jobs and 30,000 others in the supply chain.

The new vehicles are all-electric versions of Nissan's flagship Qashqai and Juke crossovers and the next-generation Nissan Leaf, the car that sparked the electrification of the automotive industry.

Announcing the plans at the Sunderland plant, Nissan president and CEO Makoto Uchida said: "Exciting, electric vehicles are at the heart of our plans to achieve carbon neutrality. With electric versions of our core European models on the way, we are accelerating towards a new era for Nissan, for industry and for our customers.

"The EV36Zero project puts our Sunderland plant, Britain's biggest ever car factory, at the heart of our future vision. It means our UK team will be designing, engineering and manufacturing the vehicles of the future, driving us towards an all-electric future for Nissan in Europe."

The announcement follows Nissan's confirmation that all its new cars in Europe from now will be fully electric, and that it expects its passenger car line-up in Europe to be 100 per cent electric by 2030.

It also builds on Nissan's Ambition 2030 vision to become a sustainable company, driving towards a cleaner, safer, and more inclusive world.

Prime Minister Rishi Sunak said: "Nissan's investment is a massive vote of confidence in the UK's automotive industry, which already contributes a massive £71 billion a year to our economy. This venture will no doubt secure Sunderland's future as the UK's Silicon Valley for electric vehicle innovation and manufacturing.

"Making the UK the best place to do business is at the heart of our economic plan. We will continue to back businesses like Nissan to expand and grow their roots in the UK every step of the way as we make the right long term decisions for a brighter future."

Nissan's latest investment includes up to £1.12bn into its UK operations and wider supply chain for research and development and manufacturing of the two new models, including facility and manufacturing process improvements, skills training, and tooling for suppliers.

It follows the £423 million investment announced by Nissan in the first phase of EV36Zero for the first future EV.

Nissan said the three new electric vehicles represent the future for all the models currently manufactured in Nissan Sunderland plant.

The announcement builds on Nissan and partners' initial £1bn investment to create EV36Zero, transforming its Sunderland manufacturing facility and creating a world-first EV manufacturing ecosystem.

Complementing vehicle and battery production is the Sunderland City Council-initiated Microgrid project, which will have the capability to deliver 100 per cent renewable electricity to Nissan and its neighbouring suppliers, incorporating the existing Nissan wind and solar farms, including Nissan's brand new 20MW solar farm.

The additional two models, alongside an additional gigafactory and further investment for infrastructure projects, will result in an investment of up to £2bn. It means Nissan's plans for the future electric versions of Qashqai, JUKE, and the replacement for LEAF, will enable up to a £3bn investment in the UK.

Chancellor of the Exchequer Jeremy Hunt said: "Nissan has a proud history in car manufacturing in Sunderland and their continued commitment to the UK shows how our support for business is getting results - helping create thousands of jobs and solidifying Britain's place as the world's 8th largest manufacturer."

UK Business Secretary Kemi Badenoch said: "The investment by Nissan in Sunderland shows once again that the Government's plan for the automotive sector is working. "The forthcoming Advanced Manufacturing Plan will build on this deal and other recent big investment wins for the UK car industry, helping to support thousands of jobs and drive growth across the UK."

Councillor Graeme Miller, leader of Sunderland City Council, said: "Today's announcement is fantastic news for Sunderland, the North East and the UK - building on our world-leading strengths in automotive and advanced manufacturing, creating high quality jobs, growing our low carbon economy and further positioning us at the heart of electrification on a global stage. It is a huge vote of confidence in the city and region - and our people - that Nissan has again chosen to invest here.

"The strength of our partnership with businesses like these alongside our ability to work with Government is essential to the continued success of the sector, and the Investment Zone for the North East announced today means we can build on our track record by attracting further investment of this scale and significance."

Nissan says that further information about three new models, including names, specifications and launch dates will be released later.