Battery plant opens way for North East to be first specialist region for low carbon cars

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Nissan is to invest more than £200 million over the next five years in a new battery factory in Sunderland. The rechargeable lithium-ion battery plant announcement provided the focus for Prime Minister Gordon Brown's declaration today (20 July) that the north east region would become the UK's first Low Carbon Economic Area (LCEA) specialising in ultra-low carbon vehicles.

The plant and Nissan's hope to start producing electric vehicles at the Sunderland plant (pictured) would create up to 350 direct jobs and create and safeguard more in the associated supply chain, Gordon Brown said. "This investment is also hugely significant as we embark on Building Britain's Future, our plan for recovery and beyond powered by low carbon, high technology industries, products and services. "Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens." The government said it was working with Nissan on supporting this investment by offering grants and loan guarantees, including support through the Automotive Assistance Programme. TUC General Secretary Brendan Barber said: "This is an excellent initiative. It combines active industrial policy and environmental transformation, pointing the way to the kind of economy we will need to build after the recession. "The old debate that says that there is only a choice between leaving it to the market or picking winners is now dead and buried." LCEAs were introduced in the Government's Low Carbon Industrial Strategy last week. They aim to draw together national, local and regional agencies to focus support on accelerating the growth of low carbon industries, skills base and supply chain. The North East LCEA, led by One North East, will focus on supporting the transformation of automotive industry, providing support for innovation and demonstration, skills training and clustering of manufacturing. As part of the LCEA, the Government intends to establish: • A training centre - the first to specialise in the manufacture and maintenance of ultra-low carbon vehicles. • A Research & Development Centre - serving as a home for research from local universities. • An open access test track to trial the use of new technologies. • The reopenin of the Leamside rail line, which would help improve access to the Port of Tyne to boost imports and exports in the region. • Over the next two years 750 charging points will be installed in the NorthEast, including supermarkets and hospitals.