The Renault-Nissan Alliance has taken the first step for its zero-emission mobility program in Europe by investing in two battery manufacturing plants in the United Kingdom and Portugal.

Nissan Motor Co., Ltd. will partner with the governments of the UK and Portugal to develop two manufacturing facilities—one within each country—to produce advanced lithium-ion batteries. Both manufacturing plants will each have a projected annual capacity of 60,000 units. The two governments agreed to extend financial assistance and other support for the construction of these facilities.

The manufacturing plant in the UK will be located in Sunderland, where Nissan has an existing manufacturing facility that produced a record of 386,000 units in 2008. The UK plant will be the Nissan European Mother Site for Battery Production.

UK Prime Minister Gordon Brown recognized the long-term benefits that the proposed Sunderland manufacturing plant will bring to the national and local economies, as the plant will not only aid in the growth of the automotive industry, but it will also pioneer the manufacture and sale of zero-emission vehicles in Europe and create up to 350 direct jobs.

The plant will also be part of the newly-established Low Carbon Economic Area in the northeast of England, where the UK Government will construct a training center that specializes in low-carbon automotive technologies, a technology park, and an open-access test track for low-carbon vehicles.

In March, Nissan and One North East, the regional development agency of Northeast England, have signed a Memorandum of Understanding to develop the region’s potential for zero-mission mobility, said Trevor Mann, Nissan Senior Vice President for Manufacturing in Europe.

UK Business Secretary Peter Mandelson added, “The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK’s place as a global leader in high-tech manufacturing and automotive industries.”

Nissan has already scouted several possible sites for the proposed manufacturing facility in Portugal, and will announce its final selection in the near future. In November, Portugal signed a final agreement with the Alliance for the implementation of a zero-emission mobility program from 2010—the first European country to do so. Under the terms of this agreement, the Alliance will supply electric vehicles by 2011 and the Portuguese Government will support a nationwide network of 1,300 recharging stations to be installed across the country over the next two years.

Portugal’s decision to invest in zero-emission mobility is part of the country’s efforts to generate its electricity from renewable energies. About 43% of electricity consumed is generated from clean energies, and with the introduction of electric vehicles in the country, Portugal will be able to reduce its dependence on fossil fuels and carbon dioxide emissions, said Portugal’s Prime Minister Jose Sócrates.

The new battery manufacturing facility in Portugal will create approximately 200 new jobs.

The Renault-Nissan Alliance is currently undergoing discussions with other European governments to identify other possible locations for battery manufacturing plants to meet volume requirements.


- Natassia Y. Laforteza