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First pillar ceremony unveils start of construction on AESC’s second UK gigafactory

AESC’s new UK gigafactory will support over 1,000 hi-tech jobs

The company’s second Sunderland factory will deliver a six-fold increase in UK electric vehicle battery production in the UK

A traditional Japanese first pillar ceremony marked the first phase of construction and celebrated ten years of electric vehicle battery production in Sunderland

Sunderland, 9 December, 2022 – AESC – a world-leading Japanese electric vehicle battery technology company – has celebrated 10 years of electric vehicle battery production in the UK with the start of construction on its latest gigafactory that will employ over 1,000 people.

AESC’s second Sunderland battery plant will have capacity of 12 GWh and will employ more than a 1,000 people when operational in 2025. It will be powered by 100% net zero carbon energy, aligning with the company’s global commitment to sustainability.

The state of the art facility will produce AESC’s latest generation batteries, with 30% more energy density to improve range and efficiency, and manufacture enough batteries to power 100,000 electric vehicles annually.

It forms part of a wider £1bn partnership with Nissan and Sunderland City Council to create EV36Zero, an electric vehicle hub supporting next generation EV production and accelerating the transition to net zero carbon mobility.

A traditional Japanese first pillar ceremony marked the first phase of work, with AESC CEO Shoichi Matsumoto tightening the bolt on the building’s ‘first pillar’ a traditional Japanese custom on construction projects. The ceremony also marked a decade of EV battery production on Wearside with the first electric vehicle battery built back in 2012, to support production of the first generation Nissan LEAF.

The company has doubled in size since production began and today employs more than 470 people in Sunderland. Globally AESC batteries are found in 800,000 electric vehicles operating with zero critical incidents.

The footprint of the new building will be the equivalent of 23 football pitches and use 14000 km of mains cables.

When complete the 360m long building will be longer than the nearby Northern Spire bridge across the river Wear.

The company will deploy the latest integrated AIoT smart technology to monitor and optimise energy consumption, manufacturing and maintenance at its new gigafactory.

Construction of the new building on the IAMP business park  – which spans land in South Tyneside and Sunderland – is being managed by leading privately-owned UK construction company, Wates Group and will pave the way for potential future investment that could eventually see the site generate 35GWh capacity and 4,500 new high value green jobs.

As the latest investment by AESC to help scale up EV manufacturing capabilities in strategically important regions, the plant follows last year’s announcements to build gigafactories in Douai, France, Kentucky US, Ibaraki Japan, and Extremadura Spain. This brings AESC’s total capacity to more than 150GWh worldwide and advances its commitment to reach 300GWh by 2026.

AESC CEO Shoichi Matsumoto said:

“The first pillar event marks the latest phase of AESC’s investment in the UK and is a sign of our ongoing commitment to Sunderland.

Our ambitious growth plans are built on a focus on quality, which is why we have over 800,000 electric vehicle batteries on the road globally with zero critical incidents.

I want to pay tribute to the fantastic team in Sunderland who over the past decade have helped ensure each and every battery is built without compromise and helped make AESC a leading battery supplier.”

Leader of Sunderland City Council, Councillor Graeme Miller, said:

IAMP provides us with a once-in-a-generation opportunity to transform our economy, creating sustainable new jobs that will support people from in and around the city for many years to come.  And as work begins on AESC’s landmark new Gigafactory, part of the wider £1bn EV Hub with Nissan– EV36Zero, we are accelerating our journey towards a greener, more sustainable future in the North East both in advanced manufacturing and in transport.  This is a milestone moment for the city.”

Nissan Europe Vice President, Engineering, Andy Marsh said:

“We are delighted to be part of today’s ground breaking ceremony for AESC’s new gigafactory.

The first Sunderland battery plant helped launch the 100% electric Nissan LEAF and the second factory will be a fundamental part of our EV36Zero project, which brings together electric vehicle production, battery manufacturing and renewables as we drive towards carbon neutrality.”

Councillor Tracey Dixon, Leader of South Tyneside Council, said:

“This is an exciting milestone and further testament to what a superb asset IAMP is for the region.

We are already leading the way in low carbon innovation and this facility will help ensure that South Tyneside residents are right at the forefront of the green revolution.

We have an incredible talent pool here in the borough and we are continuing to nurture our workforce so that their skills and expertise mean they can capitalise on high quality jobs like those being created here, driving the green economy.”

About AESC:

AESC is a Japan-headquartered global battery technology company dedicated to the research, development, design, manufacturing, and sale of power batteries for electric vehicles (EVs) and energy storage systems. AESC has over 7,000 employees and 13 manufacturing sites across Japan, the U.S., the U.K., France, Spain, and China.

Over the past 13 years, AESC has produced power batteries for more than 950,000 EVs across 59 countries, achieving a flawless record of ‘zero critical incidents.’ AESC teams strive for continuous improvement and global leadership in product development, quality, and sustainability. In 2022, AESC was again named among ‘Global Tier 1 Battery Companies’ by Benchmark, a leading UK-based lithium-ion battery supply chain research organization.