The United Kingdom (U.K.) has announced a 1-billion-pound ($1.33 billion) funding deal for a new AESC gigafactory, which would manufacture electric vehicle batteries.
Japanese-headquartered battery maker AESC would build the facility in Sunderland, northern England. The government said it would provide batteries for up to 100,000 Electric Vehicles (EVs) per year — a six-fold increase on current capacity.
“We are going further and faster to boost our industries’ resilience and encourage their growth,” Rachel Reeves, Finance Minister said in a statement, recently.
“This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs,” she added.
Nissan operates Britain’s largest car manufacturing site in Sunderland.
The company announced a major investment in the plant in 2023 to build electric versions of two of its cars.
Britain said its National Wealth Fund and UK Export Finance would provide financial guarantees to unlock 680 million pounds in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA.
The cash would be used to fund the construction and operation of the plant.
The remaining 320 million was secured through private financing in addition to new equity provided by AESC, the government statement said.
“This investment marks a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonization and the expansion of its EV market,” said Shoichi Matsumoto, AESC Chief Executive in remarks distributed by the British government.