UK's biggest EV battery gigafactory shelves expansion as Jaguar Land Rover talks stall
Guardian AU Business
β’Sat, 15 Aug 2026 11:00:54 GMT
π° What Happened
The UK's biggest EV battery gigafactory has put its expansion on hold. Chinese-owned AESC makes batteries for Nissan at its plant in Sunderland. But AESC pushed back its ramp-up plans because of lower-than-expected demand from Nissan. Talks to supply batteries to Jaguar Land Rover also stalled. The factory sits next to Nissan's car plant in Sunderland.
π The Backstory
The delay is another sign of a slowing shift from petrol and diesel cars to electric ones. The UK government on Friday said it could cut electric car sales targets further. That is a potential blow to the EV supply chain. Battery makers in the UK and Europe have struggled for years as carmakers pulled back from earlier ambitions. Several big European battery projects have gone bankrupt, and others have had to scale back. The industry is dominated by Chinese players like CATL and BYD.
π― Why It Matters
Battery factories are central to the future of electric cars. Slowing expansion could delay the UK's move to EVs and affect thousands of jobs in the auto industry.
The UK's biggest EV battery gigafactory has put its expansion on hold. Chinese-owned AESC makes batteries for Nissan at its plant in Sunderland. But AESC pushed back its ramp-up plans because of lower-than-expected demand from Nissan. Talks to supply batteries to Jaguar Land Rover also stalled. The factory sits next to Nissan's car plant in Sunderland.
The delay is another sign of a slowing shift from petrol and diesel cars to electric ones. The UK government on Friday said it could cut electric car sales targets further. That is a potential blow to the EV supply chain. Battery makers in the UK and Europe have struggled for years as carmakers pulled back from earlier ambitions. Several big European battery projects have gone bankrupt, and others have had to scale back. The industry is dominated by Chinese players like CATL and BYD.
Battery factories are central to the future of electric cars. Slowing expansion could delay the UK's move to EVs and affect thousands of jobs in the auto industry.