Sunderland's gigafactory has been given a £1 billion boost

Off the back of a reduced tariff negotiation with the US comes more good news for the UK car industry. This time, in the form of cash money investment – to the tune of £1 billion – into AESC’s Sunderland-based gigafactory.

The electrifying move is set to support a 1,000-strong workforce manufacturing batteries to go into up to 100,000 electric cars annually, and erm, actually get the thing (pictured) under final construction.

The gigafactory is expected to be operational later this year and will have a capacity of 12 gigawatt-hours (GWh).

That whopping finance pot is a cumulative value from banks including Standard Chartered, HSBC and SMBC, plus more equity directly from Japanese battery manufacturer AESC.

Chancellor Rachel Reeves said: “This investment follows hot on the heels of the 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 people’s pockets.”

Tim Reid, boss of the UK's Export Finance (the country's export credit agency) 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."