Work on a gigafactory that will make batteries for electric vehicles will start in the next few months after a multimillion-pound Government grant helped attract £1.7bn from private investors.
The Britishvolt factory near Blyth, in Northumberland, will create 3,000 direct jobs and another 5,000 in its supply chain when it reaches capacity. It is being built on the former coal yards of the old Blyth Power Station.
A Government grant worth ‘tens of millions’ has helped the company secure funding of £1.7bn, with Business Secretary Kwasi Kwarteng visiting the planned factory site to hail its “world beating technology”.
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Britishvolt – which was only formed two years ago – has been given a grant from the Government’s Automotive Transformation Fund and has secured a partnership with investment groups Trixtax and abrdn to fund the project.
The announcement means that the North East will have the 海角视频’s first two battery gigafactories, following plans from Nissan and its battery partners Envision AESC announced next year. The developments put the region in the lead of efforts to de-carbonise the transport sector and contribute to the Government’s net zero agenda.
The investment also comes just a few days after the North East regained its unwanted title of having the 海角视频’s highest unemployment rate, with rising joblessness in the region running counter to falling rates nationally.
Mr Kwarteng said: “This investment is enormously significant. We’re talking about billions of pounds of investment, 8,000 jobs and the re-industrialisation of the 海角视频 and the region.
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“We look at a pretty rigorous programme when it comes to investment but I was satisfied, as were my colleagues across Government, that this is a really good use of taxpayers’ money that can bring in billions of pounds of investment.”
Britishvolt first announced its plans for the site near Blyth in late 2020, though it warned at the time that it still needed to raise another £1.2bn to bring its vision to reality.
The company acquired the site last April and secured planning permission for what will be the fourth largest building in the 海角视频 in July. Preparatory work on the site has begun and the company will start the main construction process in the first quarter of this year.
The project will be built in phases to keep up with technological advances, but Britishvolt is aiming to have a total capacity of over 30GWh – producing batteries for more than 300,000 electric vehicles a year – by 2030.
Britishvolt executive chairman Peter Rolton said: “This announcement is a major step in putting the 海角视频 at the forefront of the global energy transition, unlocking huge private sector investment that will develop the technology and skills required for Britain to play its part in the next industrial revolution.
“The news is the first step in creating a commercialised battery ecosystem, that perfectly aligns with the existing R&D ecosystem. Britishvolt will be the anchor for attracting further sections of the supply chain, be it refining or recycling, to co-locate on the Britishvolt site. This not only shortens supply chains but also allows for partners to access the abundance of renewable energy on site to truly power low carbon, sustainable battery production.
“It will also allow us to catapult our unique tailormade business proposition on a global scale, with sites already selected for development in other countries.
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“I’m especially proud that this is such a major boost for Northumberland – the county of my birth – bringing around 3,000 direct highly-skilled jobs and another 5,000+ indirect wider supply chain roles into the region.”
Prime Minister Boris Johnson said: “Britishvolt’s plan is a strong testament to the skilled workers of the North East and the 海角视频’s place at the helm of the global green industrial revolution.
“Backed by Government and private sector investment, this new battery factory will boost the production of electric vehicles in the 海角视频, whilst levelling up opportunity and bringing thousands of new highly-skilled jobs to communities in our industrial heartlands.”
Wansbeck MP Ian Lavery, whose constituency includes the site, called Britishvolt’s announcement “fantastic”, saying it could “transform the area”. Blyth Valley MP Ian Levy and Northumberland County Council leader Glen Sanderson also welcomed the news.