The Government is reportedly in negotiations to provide funding for further UK-based gigafactories after Nissan announced plans for a battery plant in Sunderland.
The Times reports today that ministers are locked in talks with at least six other companies interested in building gigafactories in Britain.
Following Nissan’s landmark announcement yesterday, talks are believed to be at an advanced stage for a factory to be built at Coventry Airport to supply batteries to Jaguar Land Rover.
The proposals were recently backed in the House of Commons and an official planning application is expected in the coming days.
Stellantis is also believed to be in talks with officials in the hope of securing funding for a facility at its Vauxhall plant in Ellesmere Port, Cheshire.
The Times report claims that business secretary Kwasi Kwarteng is ‘hopeful’ that deals can be agreed to support the new gigafactories.
The Faraday Institution predicts the UK will need to build at least eight new gigafactories to meet demand by 2040.
It is believed the Government has put aside £500m to help invest in similar projects in a bid to meet their targeted ban on new petrol or diesel cars by 2030.
Building work for Britain’s first gigafactory is already underway in Blyth, Northumberland.
Britishvolt – the firm behind the £2.6bn project – hopes to make enough batteries for 300,000 electric cars a year by 2027.
Nissan’s new site, opening in 2024, will have capacity for 9GWh, sufficient to produce batteries for up to 100,000 vehicles a year.
The plant will add 1,600 jobs to the automotive industry including 900 at Nissan.