A&O Shearman advises on GBP1.036 billion project financing for AESC’s 15.8 GWh EV battery gigafactory in the U.K.

The project will significantly increase the U.K.’s EV battery production capacity and will play a vital role in helping to drive the country towards its net zero targets. Once operational, the Sunderland gigafactory is expected to produce up to 100,000 lithium-ion EV batteries annually, making it the largest gigafactory in the U.K. that will employ over 1,000 people and supply EVs.

The financing represents the first project financing of a gigafactory in the U.K. and follows the successful financial close of AESC’s gigafactory project in France in October 2023, on which A&O Shearman also advised.

The majority of loans are backed by the National Wealth Fund (NWF) and UK Export Finance (UKEF) and forms part of the U.K. government’s strategic focus on gigafactories, as a core sector for investment in the U.K.

The A&O Shearman ENRI deal team was led by London partner Michael Diosi and counsel Megan Chen-Schlote with support from senior associate Arvindh Rai, associates Kyra Chong and Lucie Prego. Project development advice (including in relation to offtakes, raw material supply and equipment procurement) was led by London partner Jason Symington, with support from senior associates, Ben Aartsen and Katie Shorter and associate Holly Adams. Specialist E&S advice was provided by Ken Rivlin (partner), Matthew Townsend (partner) with support from associates Ming He Tan, Nick Ognibene, and Ming Zee Tee. Tax advice was provided by Gareth Banfield (counsel). The transaction was assisted also by A&O Shearman’s Project Management team led by Joe Ward and Emma Harris.