The UK government has secured a £1 billion investment for a new electric car battery plant in Sunderland, strengthening the country’s green manufacturing capabilities and supporting net zero targets.
The gigafactory will be built at the International Advanced Manufacturing Park in Washington, becoming AESC UK’s second facility in the city. The plant will support 1,000 high-skilled jobs and produce batteries for 100,000 electric vehicles annually.
Chancellor Rachel Reeves visited the site and highlighted the broader impact of the investment.
“This 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,” Reeves said.
The announcement comes just days after a UK-US trade agreement that cut car export tariffs, boosting the competitiveness of British automotive exports globally.
The plant received initial approval in 2023. The Secretary of State gave final authorization in September 2024, addressing concerns about the site’s partial location on green belt land.
The £1bn package will fund construction completion and future operations. The project includes £150 million in grant funding through the government’s Automotive Transformation Fund.
This new gigafactory represents a critical step in scaling up domestic battery production and reducing dependence on overseas supply chains – both essential for meeting automotive industry demand and achieving net zero goals.
Sunderland continues to cement its position as an EV innovation hub. AESC’s expansion complements Nissan’s existing EV production in the region, including the Leaf model, and enhances the city’s growing status as a national center for green technology and advanced manufacturing.
The facility is expected to play a key role in supporting the UK’s automotive future while delivering economic growth to the North East.
