Chancellor visits AESC's new gigafactory to confirm £1bn of investment and 1,000 new high paid jobs for Sunderland

The new AESC gigafactory will manufacture batteries for electric vehicles, including Nissan, powering up to 100,000 electric vehicles each year - a six-fold increase on the country’s current capacity.

The additional money will be financed from the National Wealth Fund, unlocking investment from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA.

In addition to this £1 billion investment, the Government’s Automotive Transformation Fund is also investing £150 million in grant funding.

The money will cover the construction and operation of the new plant.

Speaking following a tour of the under construction site, Mrs Reeves said: “Sunderland Echo readers know that it’s working people and companies that drive growth.

“The city is a car-producing powerhouse with a proud industrial heritage and this Government will always have the industry’s back.

“Today’s £1 billion investment for a new gigafactory is not only a win for working people with 1,000 jobs for the region but is a vote of confidence in Sunderland’s auto expertise.

“One of the first things we did as a Government was to create the National Wealth Fund which will help to grow the economy in industrial heartlands like Sunderland.

“It’s about creating jobs and putting more money in people’s pockets. The jobs created at AESC will be well paid jobs, many with salaries in excess of £50,000 per year.”

Washington MP Sharon Hodgson and the North East mayor Kim McGuiness joined the chancellor on her tour.

Mrs Hodgson said: “The jobs being created is really exciting news for local families. It’s going to be transformational and will make a real difference to local people.”

Mrs McGuiness added: “The development of the gigafactory and transition to electric vehicles is an important step towards a more green economy. This Government is investing in our region and creating real jobs for local people.”

The new gigafactory is seen as a key part of the country’s move towards its net zero target for carbon emissions.

Mrs Reeves said: “This investment in Sunderland will accelerate our move to more sustainable transport.

“This pro-industry Government promised a Plan for Change that delivers economic growth for places like Sunderland. We are delivering on that promise.”

Sunderland born business secretary Jonathan Reynolds was also visiting the site.

He said: “We’re backing our world-class car industry, and this investment is yet another vote of confidence in the North East’s 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.”

AESC Head of UK Operations Jeff Pratt added: “It was great to welcome the Chancellor to site today - it's such a key time for us as a business and the confirmation of financing through today's announcement gives us a firm footing to progress our major recruitment plans creating new jobs in the city.

“This builds on our long-standing partnership with Sunderland City Council who have supported us over many years, not just on the new gigafactory but also on our original Sunderland battery plant.

“They work closely with us day by day bringing together key local, regional and national stakeholders to support our growth and maximise the benefits of our project for people across Sunderland and the wider North East.”

During her visit to Sunderland, the chancellor was also keen to highlight yesterday’s (May 8) trade deal with the USA which will see car export tariffs reduced from 27.5% to 10%.