Nissan plans to spend more than $1 billion developing electric versions of its best-selling vehicles

Nissan will spend $1.4 billion to modernize its northeast England factory to build electric versions of its two best-selling cars, helping the British government revitalize its economy.

At its Sunderland factory, 6,000 workers make the gasoline or gas-hybrid Qashqai and smaller Juke crossovers.

Nissan is directly investing up to 1.12 billion pounds ($1.4 billion) to make electric successors to the two models. The government stated in a second press release that the funds will enable "wider investment in infrastructure projects and the supply chain, including a new gigafactory" for EV batteries at the site.

Prime Minister Rishi Sunak said Nissan's investment is a tremendous vote of confidence in the U.K.'s automotive industry, which generates 71 billion pounds annually.

Sunak visited the factory for the announcement, taking selfies with Treasury chief Jeremy Hunt in front of a blue Qashqai on the production line, meeting workers, and getting a tour. Hunt unveiled tax cuts and other budget targets the day before a national election next year, amid lackluster U.K. economic growth and high inflation for consumers.

The Qashqai is the UK's second-most popular car this year, but the Juke is seventh. Nissan also announced that the factory will build the next Leaf electric car.

In 2021, the business announced it would construct an electric vehicle at the factory with batteries from Envision-owned AESC next door. AESC announced a third gigafactory in Sunderland on Friday.

Nissan plans to electrify all European passenger cars by 2030.

Nissan joins other U.K. automakers producing EVs, even as Sunak extended its deadline to stop selling new gas and diesel cars to 2035.

BMW announced earlier this year that it will invest 600 million pounds in its Oxford Mini factory to make electrified cars by 2026.