North East and Sunderland to lead the way in electric vehicle battery supply thanks to £4bn of funding
The Government has today (December 17) announced the launch of a new regional EV supply chain pilot in partnership with the North East Metro Mayor Kim McGuinness.
The news follows on from yesterday’s launch of the new Nissan Leaf electric vehicle at the Sunderland manufacturing plant.
Batteries for the new vehicles will be supplied by AESC which is located alongside Nissan and has opened a new 12 GWh gigafactory to supply the Japanese car manufacturing giants.
The North East has emerged as a UK leader in battery technology and electrification, with over £3 billion in recent investments and a globally competitive supply chain.
The new programme in the North East, alongside its counterpart in the West Midlands, will open in early 2026 and be implemented under the government’s modern Industrial Strategy’s £2.5 billion DRIVE35 programme.
An additional £1.5 billion investment was announced in the Budget, bringing total capital support to an unprecedented £4 billion until 2035.
The news was announced by the Industry Minister Chris McDonald who was speaking at the Nissan Leaf launch event.
Mr McDonald said: “With this funding we’re backing electric vehicle manufacturing in both the North East and West Midlands to succeed – shoring up our supply chains, securing local jobs and creating new opportunities in local communities.
“Through our modern Industrial Strategy we’re giving the car sector the tools it needs to thrive, and working in partnership with business and local government to ramp up EV manufacturing across the country as we drive forward the net zero transition.”
AESC announced last month that it was looking to recruit over 100 new jobs at the plant.