Britain is in line for another gigafactory after Jaguar Land Rover began talks with the battery maker that supplies Nissan about producing power sources for its Land Rover and Range Rover models.

Envision AESC, which has its roots as a joint venture between Nissan and Japanese conglomerates NEC and Tokin, is already planning a new battery plant for the Japanese car maker in Sunderland.

However, the size of a potential deal with Jaguar Land Rover, Britain’s biggest car maker, would require a second battery factory, according to insiders.

One possible site for a JLR/Envision battery factory is the former steel works in Redcar on Teesside, which has access to renewable energy sources as well as the necessary space. 

Sites in Hungary and Spain are being considered as well as the UK, the Financial Times reported, but it is understood the Tata-owned car maker wants a factory to be in the UK.

Jaguar Land Rover said: “We are exploring all options at this time. No decisions have been made.” 

Envision did not respond to a request for comment.

JLR, which together with Nissan accounts for the majority of cars made in the UK, is lagging its main rivals in choosing a battery supplier.

Aston Martin struck a deal earlier this month with UK-based Britishvolt, which plans a gigafactory in Blyth, Northumberland. Chinese-owned sports car maker Lotus has also partnered with Britishvolt.

Nissan, which blazed a trail with its all-electric Leaf model that first went on sale more than a decade ago, is planning its second battery factory.

Making batteries in the UK is regarded as crucial to the success of British car makers because so much of the cost and performance of electric vehicles is determined by the battery.