AESC, a leading electric battery manufacturer in the North East, is set to receive a significant boost in its expansion efforts with a £200 million government loan. This investment by the UK Infrastructure Bank aims to support the construction of a new gigafactory in Sunderland, marking a pivotal development in the UK’s electric vehicle (EV) supply chain.
Sunderland-based AESC, which has a longstanding partnership with Nissan and Sunderland City Council, is in the process of constructing its second plant as part of a £450 million project. This initiative is expected to significantly enhance the regional economy and fortify the UK’s position in the electric vehicle sector.
AESC’s growth in the North East is noteworthy, with more than a decade of operation producing electric vehicle batteries for Nissan. Since beginning production, the company has doubled in size, now employing over 470 individuals. Its existing 1.8GWh facility, operational since 2012, stands as the UK’s only gigafactory currently in operation.
The new 15.8GWh gigafactory, financed by the UK Infrastructure Bank’s bridging loan, is set to manufacture lithium-ion batteries for next-generation electric vehicles. The scale of this project is immense, with the new facility covering an area equivalent to 23 football pitches and utilizing 14,000 km of mains cables. This expansion is expected to create and support over 1,000 jobs upon becoming operational.
This project is aligned with the Government’s recently unveiled Battery Strategy and the UK’s commitment to achieving Net Zero. It underscores the critical need for domestic battery manufacturing to support future UK car production. Current forecasts indicate a demand for approximately 200GWh of battery capacity by 2040 to meet the needs of car manufacturers.
AESC operates globally, with facilities in the UK, France, Spain, the US, China, and Japan. The UK Infrastructure Bank’s financing is specifically targeted at enhancing the Sunderland facility. John Flint, CEO of the UK Infrastructure Bank, highlighted the strategic importance of domestic battery supply chains in the UK’s transition to Net Zero and emphasized the Bank’s commitment to investing in this crucial infrastructure.
The UK’s Battery Strategy, formulated in response to Nissan’s indication of the need for a third gigafactory, outlines the Government’s 2030 vision for a competitive global battery supply chain. This strategy includes a £50 million investment in UK research, further boosting the country’s capabilities in battery technology.
Last year, a report by the Business and Trade Committee warned of the necessity for measures to incentivize electric vehicle battery production in the UK. Without these incentives, the UK car industry could face a decline, despite its potential to become a leader in sustainable and ethical battery production. 
