Bank of England Governor Minimizes Inflation Concerns; Nissan announces UK’s first gigafactory – business live | Business
Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
Japanese auto giant Nissan has unveiled plans for the UK’s first gigafactory producing batteries for electric vehicles, as part of a Â£ 1bn investment plan that secures the future of its Sunderland Automobile Plant.
The move is a boost for the North East and the UK auto industry as it attempts to switch from internal combustion engines to electric vehicles in pursuit of net zero.
Nissan announced it will invest Â£ 423million in the Sunderland plant to produce a next-generation all-electric crossover, creating 750 new jobs.
And its Chinese partner, battery producer Envision-AESC, is spending Â£ 450million to build a battery factory next door, which will provide power supplies to power vehicles, creating another 900 roles.
Sunderland’s board is also on board – leading an Â£ 80million plan to create a ‘micro-grid’ of solar and wind farms to power energy-hungry factories, including a dedicated energy storage facility made from used electric car batteries.
The plan is expected to create around 6,000 direct and indirect jobs in the supply chain.
Gigafactories are vital to the move towards electric cars, and earlier this week the UK auto industry warned Britain could be ‘stranded’ unless the government helps increase capacity . The SMMT called for a âbinding targetâ of 60 GWh of battery capacity by 2030, to protect the future of the industry:
The first phase of the Sunderland gigafactory will have a capacity of 9 gigawatt hours, capable of producing enough batteries for 100,000 cars per year, but if demand increases enough, Envision could invest an additional 1.8 billion pounds to expand the new factory. to 25 GWh by the end of the decade, the Financial Times says.
Nissan’s plan – to merge vehicle and battery production with a renewable energy source – is called “EV36Zero”, and chief executive Makoto Uchida says it may be a model for the industry’s future. automobile.
âOur announcement is the result of long discussions and will accelerate our efforts in Europe to achieve carbon neutrality. The experience and know-how acquired through the project will be shared globally.
Prime Minister Boris Jonson called it a pivotal moment:
âNissan’s announcement to build its next-generation all-electric vehicle in Sunderland, alongside a new Envision AESC gigafactory, is a major vote of confidence in the UK and our highly skilled workers in the North. Is.
“This is a pivotal moment in our electric vehicle revolution and securing its future for decades to come.”
Action to follow …
Also coming today …
Chancellor Rishi Sunak is expected to promise to make the UK the most ‘advanced and exciting’ financial services hub in the world and a hub for green finance, when it presents a roadmap for the sector at Mansion House plus late Thursday.
My colleague Richard Partington explains:
The Chancellor is expected to use his first speech to city financiers at Mansion House’s annual speech to announce details of a UK Â£ 15bn government bond issuance program, the proceeds of which will be spent for environmentally friendly projects.
Aiming to make Britain a world leader in low-carbon financial services, Sunak will also launch a separate Green Savings Bond for UK consumers, which it says will be used to help fund savings programs. infrastructure and create more green jobs across the UK.
Bank of England Governor Andrew Bailey also speaks.
the OPEC A group of oil producers and allies, including Russia, are holding their monthly meeting, where they will decide whether they should continue to ease their production restrictions by increasing oil production in August.
The UK retail sector suffered another blow overnight, with Gap Inc confirming plans to close all of its 81 stores in the UK and Ireland, which could cost more than 1,000 jobs.
Our retail correspondent Sarah butler writes:
The US retailer said stores will close between late August and late September this year, but will continue to operate its online store in the UK and Ireland. Gap has not confirmed how many jobs will disappear, but it is estimated to employ at least 20 people in each outlet.
The move is the result of a strategic review of the San Francisco-based company’s European operations that began in October last year. Gap said earlier this month that it would close just 19 stores in the UK and Ireland when their lease ends.
European stock markets are expected to start the new month with gains, as investors await further health checks on factories in the UK, Eurozone and US, and the latest weekly jobless claims in the US – ahead of tomorrow’s US non-farm payroll report.
- 9am BST: Andrew Bailey: Speech at Mansion House
- 9:30 a.m. BST: UK manufacturing PMI for June
- 10 a.m. BST: Eurozone unemployment statistics for June
- Noon: start of the OPEC conference
- 1:30 p.m. BST: US Unemployment Weekly Report