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AESC shelves Sunderland EV battery expansion as JLR talks stall
The Chinese-owned battery maker cited lower-than-expected demand from Nissan and the lack of a Jaguar Land Rover supply deal, delaying its ramp-up at the UK gigafactory.
AESC, the Chinese-owned company behind a major EV battery gigafactory in Sunderland, has shelved plans to expand production after stalled talks with Jaguar Land Rover, according to people with knowledge of the situation cited by The Guardian Business.
The outlet said the decision reflects lower-than-expected demand from AESC’s Nissan business and that without a confirmed supply agreement with JLR, the company has had to push back its ramp-up plans at its Sunderland site next door to Nissan’s plant.
The slowdown adds to signs of a weaker UK EV transition, with The Guardian Business reporting that the UK government could cut electric car sales targets further, potentially affecting the wider EV supply chain.
JLR has been working to secure battery cells ahead of its sister company Agratas, whose Somerset gigafactory is not scheduled to start production until 2027, and The Guardian Business said JLR reached agreements with other battery suppliers in the meantime.