Japanese EV battery manufacturer AESC will build a £1-billion gigafactory in Sunderland, UK with enough capacity to power up to 100,000 electric vehicles per year.

The gigafactory represents a six-fold increase in the UK’s current EV battery production capacity, according to the company.

The National Wealth Fund and UK Export Finance will provide financial guarantees to unlock £680 million in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA to cover the 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.

In addition to this £1-billion investment, the UK Government’s Automotive Transformation Fund is providing £150 million in grant funding.

“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. Through close collaboration with strategic partners, we strive to accelerate this transition while creating high-quality local jobs and building a resilient, sustainable supply chain,” said AESC’s CEO, Shoichi Matsumoto.

Source: UK HM Treasury