The United Kingdom has announced a landmark £1 billion ($1.33 billion) funding deal for the construction of a new gigafactory by Japanese battery manufacturer AESC in Sunderland, northern England. The plant, set to deliver batteries for up to 100,000 electric vehicles per year, marks a significant leap forward in Britain’s push for clean transportation and domestic manufacturing resilience.
Major Expansion for UK’s Electric Vehicle Supply Chain
The new AESC gigafactory will multiply the country’s current EV battery production capacity sixfold. Finance Minister Rachel Reeves underscored the deal’s significance, stating, “We are going further and faster to boost our industries’ resilience and encourage their growth.” She emphasized that the Sunderland investment would not only accelerate innovation and the shift to sustainable transport but also create high-quality, well-paid jobs in the region.
Supporting Sunderland’s Automotive Hub
The location is no coincidence: Nissan already operates the UK’s largest car manufacturing site in Sunderland and last year committed to building electric versions of two of its flagship models at the plant. The AESC factory will directly support Nissan’s operations, reinforcing Sunderland’s position at the heart of Britain’s automotive transition to electric vehicles.
Funding Details and Industry Collaboration
The funding package is a blend of public and private resources. The British government’s National Wealth Fund and UK Export Finance will provide financial guarantees, unlocking £680 million in financing from a consortium of major banks, including Standard Chartered, HSBC, SMBC Group, Societe Generale, and BBVA. The remaining £320 million comes from private financing and new equity from AESC itself.
Shoichi Matsumoto, CEO of AESC, described the deal as “a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonization and the expansion of its EV market.” The company’s Sunderland facility is expected to become a critical supplier of next-generation batteries for the rapidly growing electric car sector in Britain and across Europe.
Government’s Commitment to Green Growth
The investment demonstrates the UK’s determination to develop a robust, homegrown EV supply chain as part of its broader strategy to cut emissions and create jobs. The new gigafactory is anticipated to power up to 100,000 EVs a year, boosting both sustainability and economic opportunity in the region.
With construction and operation funding now secured, the Sunderland gigafactory is poised to play a central role in the future of Britain’s electric vehicle industry—delivering batteries, jobs, and momentum for a cleaner transport future.
