AESC secures $1.3 billion to build EV battery plant in UK
The new gigafactory in Sunderland is expected to provide employment to over 1000 people and power 100,000 electric vehicles annually, six times more than the country’s current capacity.
Battery maker AESC has secured £1 billion (about USD 1.3 billion) in funding for a new electric car battery plant in Sunderland in an agreement backed by the UK government.
The funding will allow the Japanese-headquartered, part-Chinese-owned company to install tooling and start production of batteries at the site, according to a report in The Guardian.
The new gigafactory is expected to provide employment to more than 1000 people and power 100,000 electric vehicles annually, six times more than the country’s current capacity.
State-bodies National Wealth Fund and UK Export Finance are providing financial guarantees to unlock £680 million, while £320m in debt funding will come from private financing and new equity from the business.
AESC already owns a car battery factory in Sunderland with an annual capacity of 1.8 GWh a year but the project was scaled back, The Guardian report said.
The new AESC plant has a capacity of up to 15.8GWh once it operates at full capacity.
“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 to the North East, putting more money in people’s pockets,” Chancellor of the Exchequer, Rachel Reeves said in a media release issued by the UK government.
“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 and make our Plan for Change a reality,” Business and Trade Secretary, Jonathan Reynolds, said.
“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 chain,” Shoichi Matsumoto, CEO of AESC, said. “We are honoured to contribute to the development of low-carbon economy with our advanced battery technologies.”
“AESC’s gigafactory will not only help to retool our car industry for net zero it will also support jobs, growth, and prosperity in the Northeast,” John Flint, National Wealth Fund CEO, said.
“This hugely exciting project is a prime example of how export financing is a powerful tool for unlocking growth opportunities for British exporters and strengthening local economies,” UKEF CEO, Tim Reid, said.
