Another boost for British car industry as 拢1 billion secured for new Sunderland gigafactory
New state-of-the-art gigafactory ignites growth in industrial heartlands, supporting 1,000 jobs and powering up 100,000 electric vehicles a year
- Chancellor visited Sunderland today following landmark economic deal with the US that saved thousands of auto jobs and slashed tariffs on car exports
- Latest action in the 바카라 사이트바카라 사이트檚 Plan for Change to strengthen our industrial heartlands, make Britain a clean energy superpower and put more money in people바카라 사이트檚 pockets through good jobs
Working people will benefit from 1,000 jobs at a new state-of-the-art gigafactory in Sunderland in a 拢1 billion auto deal to accelerate the transition to electric vehicles and boost growth.
This investment is another boost for the British car industry after yesterday바카라 사이트檚 landmark economic deal with the United States saved thousands of jobs by slashing tariffs on British exports.
The new AESC gigafactory will manufacture batteries for electric vehicles, powering up to 100,000 EVs each year - a six-fold increase on the country바카라 사이트檚 current capacity 바카라 사이트� making the UK globally competitive selling more British EVs at home and abroad and helping to achieve our net zero target.
In the landmark transaction, the National Wealth Fund and UK Export Finance will provide financial guarantees which unlock 拢680 million in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. This will cover construction and operation of the new plant. The remaining 拢320 million has been secured through private financing in addition to new equity provided by AESC.
In addition to this 拢1 billion investment, the 바카라 사이트바카라 사이트檚 Automotive Transformation Fund is also investing 拢150 million in grant funding.
This is the 바카라 사이트바카라 사이트檚 Plan for Change in action, making us more competitive on the world stage, helping Britain on its way to becoming a clean energy superpower through innovation in the automotive sector, and delivering economic growth that puts more money in people바카라 사이트檚 pockets through high skilled jobs.
Chancellor of the Exchequer, Rachel Reeves, said:
We are going further and faster to boost our industries바카라 사이트� resilience and encourage their growth as part of our Plan for Change, and this investment follows hot on the heels of yesterday바카라 사이트檚 landmark economic deal with the US which will save thousands of jobs in the industry.
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 people바카라 사이트檚 pockets.
Business and Trade Secretary, Jonathan Reynolds, said:
We바카라 사이트檙e backing our world-class car industry, and this investment is yet another vote of confidence in the North East바카라 사이트檚 thriving auto manufacturing hub which will secure a thousand well-paid jobs and boost prosperity across the region.
Our modern Industrial Strategy will drive this growth even further, powering our high-potential sectors like advanced manufacturing so we can deliver jobs and investment in every corner of the UK and make our Plan for Change a reality.
The Chancellor visited AESC in Sunderland today (Friday 9 May) where she met staff and local leaders to discuss how the investment will bring jobs and prosperity to the North East, and how the landmark economic deal secured with the US will secure the industry for years to come.
The deal slashes car export tariffs from 27.5% to 10% and will apply to a quota of 100,000 UK cars 바카라 사이트� almost the total exported last year.
This will save some car companies hundreds of millions of pounds, making high skilled jobs in industrial heartlands like Sunderland more secure.
Shoichi Matsumoto, CEO of Japanese headquartered AESC, said:
This investment marks a key milestone in AESC바카라 사이트檚 ongoing efforts to support the UK바카라 사이트檚 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.
John Flint, National Wealth Fund CEO, said:
AESC바카라 사이트檚 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 government바카라 사이트檚 growth and clean energy missions.
UKEF CEO, Tim Reid, said:
This hugely exciting project is a prime example of how export financing is a powerful tool for unlocking growth opportunities for British exporters and strengthening local economies.
We바카라 사이트檙e proud to join forces with partners to back this pioneering gigafactory that will help cement the UK바카라 사이트檚 prowess as an EV battery-making force for years to come.
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- The government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology.
- To date, the Automotive Transformation Fund바카라 사이트痑nd Advanced Propulsion Centre바카라 사이트痜unding programmes have leveraged over 拢6 billion of investment from the private sector.
- Last year바카라 사이트檚 Autumn Budget also confirmed over 拢2 billion for capital and research and development funding over five years for zero emission vehicle manufacturing and their supply chains 바카라 사이트� a vote of confidence in the UK바카라 사이트檚 automotive industry, supporting investment and productivity growth.
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Ian Stuart, UK CEO for HSBC who were joint ECA Coordinator & Structuring Bank (alongside SCB) as well as Underwriting Bank and Mandated Lead Arranger, said:
We바카라 사이트檙e extremely proud to have played a leading role in this complex and significant deal, including as underwriter, structuring bank and joint ECA co-ordinator.
Once operational, the gigafactory will unlock a huge increase in the UK바카라 사이트檚 EV battery production, supporting the electrification of vehicles and the wider green transition. The inward investment involved in the project will also deliver highly-skilled jobs and economic growth to North East England.
Hideo Kawafune, CEO, Head of EMEA, SMBC Banking International plc said:
SMBC Group is delighted to participate in the successful financing of this landmark Gigafactory project. As a lending partner we바카라 사이트檙e proud to work alongside partners such as National Wealth Fund, UK Export Finance and Sinosure, as well as existing client AESC, in order to support projects which power the energy transition.바카라 사이트澛�
Saif Malik, CEO, UK and Head, Client Coverage, UK, Standard Chartered said:
We are proud to support this transformative UK project. The development of AESC바카라 사이트檚 new gigafactory will deliver significant economic benefits locally while supporting the development of zero-emission technology. This is more than an investment in infrastructure, it바카라 사이트檚 a commitment to innovation, UK economic growth and sustainability. Supporting the transition to net zero is deeply embedded in how we operate as a Bank, and this project reflects how we bring that to life by supporting clients on their own sustainability journeys.
Lenaig Trenaux, Societe Generale바카라 사이트檚 Global Head of Batteries, Mining and Industries, said:
We are proud to have worked with AESC to deliver the first gigafactory project financing in the UK, which has benefitted from strong support from the National Wealth Fund and UK Export Finance.
Societe Generale바카라 사이트檚 deep understanding of the EV value chain, coupled with our experience working with AESC, were instrumental in delivering the project financing.
This is another demonstration of SG바카라 사이트檚 commitment to the green mobility and another step towards the energy transition.
Beatriz Roa, Global Sectoral Head of Industrials at BBVA, states:
BBVA is proudly supporting AESC in this landmark project in the UK. This gigafactory will help foster the transition to electric vehicles while supporting the buildup of an entire ecosystem around battery manufacturing in Sunderland. These are key objectives in BBVA바카라 사이트檚 efforts to support the transition to a more sustainable economy and to the auto and energy industries in particular.