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yesterday

UK Secures £1 Billion Deal for AESC Gigafactory in Sunderland

The new facility will produce EV batteries for 100,000 vehicles annually, create over 1,000 jobs, and bolster the UK’s green industrial strategy.

Britain's Chancellor of the Exchequer Rachel Reeves speaks during a discussion entitled "Debate on the Global Economy: Growth and Resilience in an Uncertain World," during the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., U.S., April 24, 2025. REUTERS/Elizabeth Frantz/File photo
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Rachel Reeves announced the deal during a visit to AESC’s facilities in Sunderland on Friday

Overview

  • The UK government finalized a £1 billion funding package for AESC’s Sunderland gigafactory, including £680 million in state-backed guarantees and £320 million in private financing.
  • The plant will supply batteries for up to 100,000 electric vehicles annually, significantly increasing the UK’s domestic EV battery production capacity.
  • Over 1,000 high-quality jobs will be created in the North East, supporting regional economic growth and skilled employment opportunities.
  • AESC’s CEO Shoichi Matsumoto described the investment as a milestone in advancing the UK’s decarbonization goals and EV market expansion.
  • The National Wealth Fund and UK Export Finance played key roles in unlocking financing, reflecting a strategic public-private partnership to strengthen the UK’s EV supply chain.