THOUSANDS of jobs will be safeguarded across the region after Nissan secured a major cash injection from Europe to develop electric vehicles.

Yesterday, the Japanese car maker said production of the Nissan Leaf and electric car batteries will progress as planned at its Sunderland plant after the European Investment Bank agreed to invest £188m.

The deal, which was agreed in principle last year, was signed on Wearside by Trevor Mann, Nissan Europe Senior Vice President for Manufacturing, and Simon Brooks, European Investment Bank Vice President for the United Kingdom.

The funding will be paid to Nissan in stages as electric vehicle production moves towards full capacity. It will support the integration of new machinery and tooling for production of the Leaf, that will be made at the plant from early 2013. The money will also fund Nissans electric car battery manufacturing plant in Sunderland which is due to start production in the new year.

Together the battery and the Leaf represent a £420m investment by Nissan, and are expected to support about 2,250 jobs.

Mr Mann said: "The Nissan Leaf has already made history as the worlds first affordable, mass-market, pure-electric vehicle and we are all very excited about battery and Leaf production beginning at Sunderland for our European market.

"We are extremely grateful for this support from the European Investment Bank, who share our vision and commitment for the roll-out of zero-emission transport."

Nissan say the Leaf can cut carbon emission by about 40 per cent compared with a normal petrol family car. The reduction of carbon emissions and tackling climate change is a key objective of the European Investment Bank - the long-term lending arm of the EU.

Mr Brooks said: "New Nissan investment to produce the Nissan Leaf model demonstrates the commercial emergence of electric vehicles from research intensive concept cars."

The Sunderland plant is one of only three worldwide to manufacture the Leaf. About 50,000 Leafs will roll off the Sunderland production line every year and the company is planning a major marketing campaign to persuade motorists they should join the electric car revolution.