£1 billion secured for new Sunderland gigafactory

A new Automotive Energy Supply Corporation (AESC) gigafactory in Sunderland capable of manufacturing batteries for powering up to 100,000 electric vehicles (EVs) each year — a six-fold increase on the country’s current capacity and making the UK globally competitive selling more British EVs at home and abroad — will see 1,000 jobs created at a new facility resulting from a £1 billion automotive deal designed to accelerate the transition to EVs and boost growth.

In the landmark transaction, the National Wealth Fund and UK Export Finance will provide financial guarantees which unlock £680 million in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. This will cover construction and operation of the new plant.

The remaining £320 million has been secured through private financing in addition to new equity provided by AESC (founded in Japan in 2007 as a joint venture between Nissan and Tokin Corporation, the company is a manufacturer of lithium-ion batteries for EVs). In addition to this £1 billion investment, the Government’s Automotive Transformation Fund is also investing £150 million in grant funding.

Further and faster
Rachel Reeves, Chancellor of the Exchequer, said: “We are going further and faster to boost our industries’ resilience and encourage their growth as part of our Plan for Change. This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport but also deliver much-needed high quality, well-paid jobs to the North East.

Jonathan Reynolds, Business and Trade Secretary, added: “We are backing our world-class car industry, and this investment is yet another vote of confidence in the North East’s thriving automotive manufacturing hub, which will secure 1,000 well-paid jobs and boost prosperity across the region. Our modern Industrial Strategy will drive this growth even further, powering our high-potential sectors like advanced manufacturing so we can deliver jobs and investment in every corner of the UK.”

AESC CEO Shoichi Matsumoto concluded: “This investment marks a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonisation and the expansion of its EV market. Through close collaboration with strategic partners, we strive to accelerate this transition while creating high-quality local jobs and building resilient, sustainable supply chains.”