Drivers are set to benefit from more electric car options as a new gigafactory gets £1billion funding to roll out more green vehicles.
The new gigafactory in Sunderland will support 1,000 jobs and will have the capability to power up to 100,000 electric vehicles a year.
The funding forms part of the Government’s Plan for Change to help accelerate the transition to electric vehicles.
The new gigafactory hopes to make the UK globally competitive, selling more British EVs at home and abroad while also helping meet the ambitious Zero Emission Vehicle mandate.
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The Chancellor announced an additional £1billion in funding for the new gigafactory
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Chancellor Rachel Reeves said: "We are going further and faster to boost our industries’ resilience and encourage their growth as part of our Plan for Change, and this investment follows hot on the heels of yesterday’s 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 northeast, putting more money in people’s pockets."
Meanwhile, Shoichi Matsumoto, CEO of Japanese headquartered AESC, explained that the investment marks a "key milestone" in supporting the UK’s 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 a resilient, sustainable supply chain," he said.
UK Export Finance CEO, Tim Reid, added: "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.
"We’re proud to join forces with partners to back this pioneering gigafactory that will help cement the UK’s prowess as an EV battery-making force for years to come."
Electric vehicles have been steadily growing across the UK, with the latest Society of Motor Manufacturers and Traders revealing a 20.4 per cent uptake in the market share.
However, this still falls short of the 28 per cent needed this year in order to stay on track with the ZEV mandate.
Under the mandate, all new car sales will need to be electric by 2030, with car makers facing penalties of £12,000 per non-compliant vehicle if they fail to meet the targets.
Business and Trade Secretary, Jonathan Reynolds, stated: "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."
On top of pushing forward with electric car sales, the UK/US trade deal announced yesterday hopes to also help carmakers.
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Electric car sales currently make up 20.4 per cent of the UK market sharePAUnder the new agreement, it slashed car export tariffs from 27.5 per cent to 10 per cent, applying to a quota of 100,000 UK cars. This reduction is expected to save some car companies hundreds of millions of pounds.
