A gigafactory being built by ISG has secured £1.7bn in investment and the backing of the prime minister.
Investor abrdn and logistics developer Tritax have joined up to commit £1.7bn to the project. The government has also tabled an offer to invest in the project. The exact amount has not been disclosed, but Construction News understands it is significantly less than the private sector investment and will be revealed later this year.
Prime minister Boris Johnson has backed the project and said in a statement today: “Backed by government and private sector investment, this new battery factory will boost the production of electric vehicles in the UK, whilst levelling up opportunity and bringing thousands of new highly skilled jobs to communities in our industrial heartlands.”
Britishvolt, which is the developer behind the plant in Northumberland, appointed ISG to deliver the facility in December 2020 with a contract understood to be worth around £300m. ISG began preliminary works in September with main works expected to start in April. The first phase of the factory is scheduled to be completed and producing batteries at the end of 2023 or early 2024.
The new investment will not only cover the cost of the factory, but also a business park for suppliers to Britishvolt.
Business secretary Kwasi Kwarteng said the government’s investment in the Northumberland plant reflected its ambition for the UK to become a global leader in battery technology.
A number of other gigafactory projects are in the pipeline. A 530,000 square metre facility in the midlands recently gained council approval and, in December, Wates was appointed to carry out design work on a £450m gigafactory in Sunderland.