UK Secures £1 Billion Investment for AESC Gigafactory in Sunderland

Sunderland, UK, 9 May 2025: An investment of £1 billion has been confirmed by the UK government to construct a new AESC gigafactory in Sunderland. The facility is set to create 1,000 skilled jobs and significantly expand the UK’s capacity to produce electric vehicle batteries, powering up to 100,000 EVs annually,  supporting export growth and advancing the nation’s net-zero targets.

AESC’s investment is being funded through a combination of £680 million (€790 million) in loans facilitated by the UK Government’s National Wealth Fund and UK Export Finance. These guarantees unlocked financing from major global banks, including HSBC, Standard Chartered, SMBC, Société Générale, and BBVA. The remaining £320 million (€370 million) comes from AESC’s private equity and other commercial sources. Additionally, the UK’s Automotive Transformation Fund is contributing £150 million (€175 million) in grants to support the project.

This initiative brings the Government’s Plan for Change to life by boosting the UK’s global competitiveness, advancing its journey toward clean energy leadership through cutting-edge automotive innovation, and generating economic growth with well-paid, skilled employment opportunities.

In an official press release by Gov.uk, Shoichi Matsumoto, CEO of Japanese headquartered AESC, 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.Through close collaboration with strategic partners, we strive to accelerate this transition while creating high-quality local jobs and building resilient, sustainable supply chain.We are honoured to contribute to the development of low-carbon economy with our advanced battery technologies.”

In the same press release, John Flint, National Wealth Fund CEO, commented, “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.This investment further demonstrates the significant role NWF is playing to crowd private capital into the industries and regions where its most needed, boosting government’s growth and clean energy missions.”

The new AESC gigafactory marks a transformative moment for the UK's automotive and green energy sectors. Through significant public-private collaboration, the project not only advances EV battery manufacturing at scale but also brings long-term economic benefits to the Northeast. By combining strategic investment with policy support, Britain is laying the groundwork to become a clean energy superpower, delivering sustainable growth and skilled employment across the country.