AESC, the UK’s largest electric-vehicle battery manufacturer, has paused plans to expand its Sunderland gigafactory after talks to supply Jaguar Land Rover (JLR) stalled. The setback reflects weaker-than-expected electric-car demand and could affect Britain’s developing EV supply chain, particularly as ministers consider reducing sales targets for new electric vehicles.

AESC currently runs two production lines supplying Nissan but has postponed a third line intended for JLR, while two further Nissan lines remain a longer-term plan. JLR had sought battery supplies before its sister company Agratas begins production at a Somerset gigafactory planned for 2027, but it has since reached agreements with other suppliers; reported disagreements involved financial commitments, costs and delivery timing. Nissan’s slower shift to electric cars and uncertainty around future production for China’s Chery have also raised questions about future battery demand in Sunderland.