The 12 GWh capacity plant will be AESC’s second facility in Sunderland and will run on 100% net-zero carbon energy. This substantial increase in capacity is a key step in establishing Britain as a major player in the global EV manufacturing sector, while supporting the country’s net-zero ambitions.
The project has received significant financial backing from the UK government. Through support from the National Wealth Fund and UK Export Finance, the initiative has secured £680 million in financing from several major banks, including HSBC, Standard Chartered, SMBC Group, Societe Generale, and BBVA. This funding will cover the construction and operation of the plant. An additional £320 million comes from private investment and new equity from AESC. Moreover, the government’s Automotive Transformation Fund is contributing £150 million in grant funding.
This announcement follows closely on the heels of a new UK-US trade agreement, which was unveiled the day before. The agreement reduces car export tariffs from 27.5% to 10% for up to 100,000 UK-made vehicles, nearly the total number of cars the UK exported last year. This change could save car manufacturers hundreds of millions of pounds and help preserve jobs in manufacturing regions like Sunderland.
Chancellor of the Exchequer Rachel Reeves visited the AESC facility in Sunderland to meet with staff and local leaders to discuss the impact of the project on the Northeast and the UK car industry. “This investment follows hot on the heels of yesterday’s landmark economic deal with the US, which will save thousands of jobs in the industry,” Reeves said.
The new factory, alongside the trade agreement, represents a major step in strengthening the UK’s position in the global EV market while supporting sustainable growth and job creation in key manufacturing hubs.
