UK battery company Britishvolt has received an in principle offer of government funding though the Automotive Transformation Fund for its planned gigafactory in Blyth, Northumberland.

Once complete, the factory will produce enough batteries for over 300,000 electric vehicles each year, significantly supporting the UK automotive industry’s transition to a zero emissions future and increased production of electric vehicles.

The government’s support for the gigafactory will help to unlock a significant amount of further support from private investors.

Alongside private sector investment, the project is set to create 3,000 direct highly-skilled jobs and another 5,000 indirect jobs in the wider supply chain.

Prime Minister Boris Johnson, said: “Britishvolt’s plan to build a new gigafactory in Northumberland is a strong testament to the skilled workers of the North East and the UK’s place at the helm of the global green industrial revolution.

“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.”

Peter Rolton, Britishvolt Executive Chairman, added: “The news is the first step in creating a commercialised battery ecosystem, that perfectly aligns with the existing R&D ecosystem. 

“Britishvolt will be the anchor for attracting further sections of the supply chain, be it refining or recycling, to co-locate on the Britishvolt site. 

“This not only shortens supply chains but also allows for partners to access the abundance of renewable energy on site to truly power low carbon, sustainable battery production.”