Thermomechanical processing of crystalline materials induces microstructural evolution such as grain nucleation and growth. In the numerical simulation of these processes, grain nucleation is generally treated as an additional ad hoc step in which circular or spherical grains are added in regions where a critical dislocation density, stress or strain are reached. In this paper, systematic finite element simulations are performed showing that the Kobayashi-Warren-Carter (KWC) phase field model and its coupling with Cosserat crystal plasticity predict spontaneous nucleation of new grains in single crystals in the presence of lattice orientation/rotation gradients. The numerical analysis of the stability of gradients of lattice rotation and dislocation-based stored energy indicates that a gradient of stored energy alone is not sufficient to trigger grain formation. As an application, the KWC-Cosserat model is used to simulate the torsion and annealing of a copper single crystal bar with a circular cross section. This mechanical loading produces a large, fairly uniform axial rotation gradient which induces nucleation in the form of a stack of cylindrical grains. Plastic strain gradients in cross-sections predicted by the 3D finite element simulation, are not strong enough to compete with the longitudinal nucleation process, as confirmed by experimental observations from the literature.