Renault and Nissan will build two plants for production of its advanced lithium-ion batteries with the financial support of governments in the UK and Portugal.
The move marks the first step for the Renault-Nissan Alliance to produce batteries for its Zero Emission Mobility programme in Europe.
The UK site will be located in Sunderland where Nissan already has an existing manufacturing facility. It will be the Nissan European Mother Site for Battery production and the centrepiece of the newly-established Low Carbon Economic Area in north east England.
As part of the Low Carbon Economic Area, government intends to establish a training centre, specialising in low carbon automotive technologies; a technology park and an open access test track for low carbon vehicles.
The location of a plant site in Portugal has not yet been decided.