AESC Secures $1.3 Billion for UK EV Battery Plant
Battery maker AESC has secured £1 billion (approximately $1.3 billion) in funding for a new electric car battery plant in Sunderland, England. The investment, backed by the UK government, will enable the Japanese-headquartered, part-Chinese-owned company to install necessary tooling and commence battery production at the site.
The new gigafactory is expected to provide employment opportunities for over 1000 people and supply batteries for 100,000 electric vehicles annually. This production capacity represents a six-fold increase over the UK’s current EV battery production.
Financial guarantees from state-backed bodies, including the National Wealth Fund and UK Export Finance, will unlock £680 million. The remaining £320 million will be sourced from private financing and new equity from the business. AESC currently operates a car battery factory in Sunderland with an annual capacity of 1.8 GWh, which had been scaled back. The new plant is expected to have a capacity of up to 15.8 GWh when fully operational.
“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,” said Chancellor of the Exchequer, Rachel Reeves, in a statement released by the UK government.
Business and Trade Secretary, Jonathan Reynolds, added, “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 stated, “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. We strive to accelerate this transition while creating high-quality local jobs and building a resilient, sustainable supply chain.”
The project is seen as a significant step in the UK’s transition to net-zero emissions and the development of its electric vehicle industry. With the new gigafactory, AESC aims to contribute substantially to the UK’s EV battery production capacity and support the growth of the local economy.
