Britain on Friday announced a 1 billion pound ($1.33 billion)funding deal for a new AESC gigafactory which will manufacture electric vehicle batteries.
“We are going further and faster to boost our industries’ resilience and encourage their growth,” finance minister Rachel Reeves said in a statement.
““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.”
Japanese carmaker 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 will 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 decarbonisation and the expansion of its EV market,” said AESC chief executive Shoichi Matsumoto, in remarks distributed by the British government.
