Vauxhall owner Stellantis has announced a £100m investment in the Ellesmere Port manufacturing plant to produce a solely battery-electric model, in both commercial and passenger versions, by the end of next year, for Vauxhall, Opel, Peugeot and Citroën brands and for both domestic and export markets. Following the investment announcement, Vauxhall said that, from 2028, the company will only offer electric cars and vans in the UK.

The UK announcement is part of a £25 billion electrification strategy for Stellantis.  The automotive group, which owns 14 car brands, has set a target for electric vehicles (EVs) and plug-in hybrids (PHEVs) to account for 70% of its European sales by 2030.

The group says it plans to secure five battery factories across Europe and North America, aiming to reduce the cost of batteries by 60% by 2030. By cutting battery costs and other measures, Stellantis says it aims for the total cost of ownership of EVs to be no higher than for internal combustion engine vehicles by 2026.

BEIS Secretary, Kwasi Kwarteng MP, said: “Today’s decision will not only power Ellesmere Port into a clean future, but will secure thousands of jobs across the region in the supply chain. In this global race to secure electric vehicle production, we are proud to support Britain’s auto sector in this crucial transition as we work to build back better.”

This investment includes plans for a new body shop, upgraded general assembly, a compression of the site area and the creation of an on-site battery pack assembly.  Stellantis says that there will be further support to enable “a pathway to carbon neutrality for the plant by the middle of this decade”.  The plant aims to be 100% self-sufficient for electricity and work will commence imminently on potential wind and solar farms.  

Stellantis also aims to consult on further investment into the Ellesmere Port site with the creation of a new UK parts distribution centre.

The Ellesmere Port will build the following all-electric vehicles, starting later this year:

Paul Willcox, Managing Director, Vauxhall Motors, said: “As of 2028, Vauxhall will only offer fully electric cars and vans in the UK.  The future of the automotive industry is electric – and Vauxhall will lead that in this country. We are on a journey to reinvent Vauxhall and heading towards a net zero CO2 future – CO2 is the new currency in our industry.”