Construction will commence next month and it is intended that production will being in early 2013. Nissan says that production of the NIssan LEAF and the batteries represents a total investment of more than £420m in the Sunderland Plant and is expected to maintain about 2,250 jobs at Nissan and across the UK supply chain.

The investment will be supported by a £20.7 million grant from the UK Government and a proposed finance package from the European Investment Bank of up to £197.3m.

Andy Palmer, senior vice president at Nissan Motor Co comments: "The world is at the dawn of a new era in automotive transport. Nissan LEAF, which will go on sale later this year, is a five-seater hatchback that offers the same space, practicality and performance of a similar car in its class - minus the tailpipe emissions."

"Thanks to the UK's firm commitment to a low carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan LEAF will be built at Sunderland, making the UK the third country in the world to produce this revolutionary car."

Story provided by Business Financial Newswire