NISSAN’S £1 billion plan to build an electric car and battery “gigafactory” in Sunderland received a warm welcome today.

Union Unite described the move, which will create 1,600 jobs and an estimated 4,500 more in the supply chain, as “a fantastic first step for the UK,” but stressed that the country urgently needed six more battery plants “just to stay at the races.”

Assistant general secretary Steve Turner, in Sunderland for the announcement, said: “Today is a vital step forward in securing a cleaner, greener future for our industry.  
 
“Nissan and this incredible workforce were determined that Sunderland should lead the pack as we transition to electric vehicles — today they have delivered.   
 
“They have battled for years to convince the government to support and invest in UK battery manufacturing, and today’s very welcome announcement will bring much-needed job security to the plant and thousands of new skilled jobs to the region. 
 
“But this fantastic first must not be the last.  
 
“We need at least another six giga-factories to secure the UK's future as a green auto manufacturer, with investment in the domestic manufacture of the high-value components urgently needed to successfully transition this industry and consumers away from the combustion engine.”

The Japanese car giant’s initiative, in partnership with battery technology company Envision AESC and Sunderland City Council, is to receive state support, but neither Nissan nor ministers would reveal how much, citing commercial sensitivity.

Shadow business secretary Ed Miliband said: “Labour called for more gigafactories, and we warmly welcome this announcement from Nissan.”

Business Secretary Kwasi Kwarteng said that the “fantastic investment” will bring high-skilled jobs to north-east England.