Nissan has been awarded a multi-million pound grant to produce electric cars at its Sunderland plant.

The £380 million deal, approved by the European Investment Bank, will turn the company's North-East factory into Europe's biggest electric car plant, reports the Daily Mail.

It also secures 4,500 jobs and those of 20,000 suppliers.

The Government will also stump up millions of pounds to help with infrastucture and "green" technology.

Nissan is due to make an official announcement next week.

The announcement boosts plans announced by the Government yesterday to give motorists a discount of up £5,000 if they buy an electric vehicle. 

The initiative also helps towards Prime Minster Gordon Brown's ambition to make the UK the "electric car capital of Europe."

One of the electric vehicles will be based around the prototype Nissan Nuvu with the first plug-in car built by the japanese manufacturer possibly making its debut in 2011 with mass roll out in 2012.