Financial guarantees from the National Wealth Fund and UK Export Finance have facilitated over £1 billion in financing from a consortium of international banks, including HSBC, Standard Chartered, BBVA, SMBC and Societe Generale.
The investment will fund construction and operations of AESC’s cutting-edge gigafactory, creating more than 1,000 direct jobs.
This significant transaction will strengthen the UK’s domestic battery manufacturing capabilities and contribute to the nation’s net zero ambitions.
The UK government, through the National Wealth Fund (NWF) and UK Export Finance (UKEF), has successfully secured in excess of £1 billion of investment for battery manufacturer AESC’s second gigafactory in Sunderland. This substantial financial commitment will bolster the UK’s battery production capacity whilst simultaneously generating employment opportunities, enhancing skills development and stimulating economic growth across the North-East of England.
“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 to the North East, putting more money in people’s pockets,” said Chancellor of the Exchequer, Rachel Reeves.
In this pioneering transaction, the NWF and UKEF have provided crucial financial guarantees* that have unlocked £680 million in financing from a syndicate of commercial banks, including Standard Chartered, HSBC, SMBC Bank International Plc, Societe Generale and BBVA. These guarantees are instrumental in facilitating a broader project financing package valued at more than £1 billion.
Upon completion, AESC Plant 2 will make a considerable contribution to the decarbonisation of Britain’s automotive sector, with initial capacity designed to power approximately 100,000 electric vehicles (EVs) annually. The facility is expected to employ upwards of 1,000 individuals.
At full operational capacity, the plant will be capable of providing up to 15.8GWh of battery supply, representing a nearly six-fold increase on current UK gigafactory capacity. AESC’s original 1.8GWh plant, which commenced production in 2012, holds the distinction of being Europe’s first and Britain’s only EV battery factory for more than a decade.