The UK's largest electric vehicle battery gigafactory, Chinese-owned AESC in Sunderland, has shelved plans to expand production amid stalled supply talks with Jaguar Land Rover and lower demand from Nissan, in what the Guardian describes as a sign of a slowing shift to electric cars.
Key facts
- AESC has shelved plans to expand production at its Sunderland gigafactory, the UK's biggest.
- The decision follows stalled talks on a deal to supply electric car batteries to Jaguar Land Rover.
- AESC's ramp-up plans were also pushed back due to lower-than-expected demand from Nissan.
- AESC is Chinese-owned and produces batteries for Nissan at a plant next to the carmaker's Sunderland site.
- The Guardian frames the developments as a sign of a slowing transition from petrol and diesel to electric cars.
The UK’s biggest gigafactory has shelved plans to expand production in Sunderland, according to the Guardian, in a development the outlet frames as a sign of the slowing transition from petrol and diesel to electric cars.
The facility is operated by Chinese-owned AESC, which produces batteries for Nissan at its gigafactory next door to the Japanese carmaker’s Sunderland plant. The company has now pushed back its ramp-up plans, the Guardian reported.
Two factors are behind the decision, according to people with knowledge of the situation cited by the Guardian: lower-than-expected demand from Nissan, and the lack of a deal to supply electric car batteries to Jaguar Land Rover (JLR).
The stalled talks with JLR are central to the pause. Without a confirmed agreement to supply the carmaker, AESC has reconsidered the timing of its planned expansion at the Sunderland site.
The Guardian presents the combination of weaker carmaker demand and the absence of new supply deals as evidence that the anticipated rapid growth in electric vehicle production and battery manufacturing may be proceeding more slowly than previously expected.
Why it matters
Gigafactories are seen as central to national plans to build domestic supply chains for electric vehicles and to meet climate goals. A pause at the UK's largest battery plant, tied to weaker carmaker demand, raises questions about the pace of the transition away from petrol and diesel cars and the jobs and investment that depend on it.
Frequently asked questions
Why has AESC shelved its gigafactory expansion?
According to the Guardian, AESC pushed back its expansion and ramp-up plans because of stalled talks on a deal to supply batteries to Jaguar Land Rover and lower-than-expected demand from Nissan.
Who owns the Sunderland gigafactory?
The gigafactory is operated by AESC, which is Chinese-owned. It produces batteries for Nissan and sits next door to the carmaker's Sunderland plant.
What does this mean for the shift to electric cars?
The Guardian frames the decision as a sign of a slowing transition from petrol and diesel to electric cars, noting that Andy Burnham has also moved to cut new EV sales targets.