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Japan-owned car battery maker secures £1bn to build second Sunderland gigafactory

about 21 hours ago
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The owner of the UK’s only operating gigafactory has secured £1bn in funding for a new electric car battery plant in Sunderland, in a government-backed deal that secures the future of a key project for the struggling British car industry.The funding will allow Japan’s AESC to install tooling and start production of batteries at the site, which is being built to serve Nissan’s car factory down the road.More than 1,000 people are expected to be employed there.The National Wealth Fund and UK Export Finance, both state bodies, will provide financial guarantees that unlock £680m in financing for the battery maker.A further £320m in debt funding will come from private financing as well as new equity from the business.

The chancellor, Rachel Reeves, who was in Sunderland for the announcement, said the deal would boost British industries’ resilience and encourage growth,“This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs to the north-east,” she said,AESC already owns a Sunderland factory capable of making car batteries with cumulative capacity of 1,8 gigawatt hours (GWh) a year,The existing gigafactory supplied batteries for Nissan’s electric Leaf.

The Japan-based, part-Chinese-owned company, formerly known as Envision, first announced a huge expansion plan in 2021 to as much as 38GWh, in two phases.However, the project has not proceeded as quickly as planned, and has been scaled back from those aggressive predictions as carmakers have come up against slower-than-expected growth in demand for electric cars.The first phase of building is now expected to be capable of 15.8GWh of batteries a year, enough for about 300,000 electric cars.The plant will supply the new version of Nissan’s Leaf.

A second phase of building has not proceeded beyond the feasibility study stage,The funding for AESC to proceed with the first phase will be a relief for the business secretary, Jonathan Reynolds, who was born near Sunderland,He described the investment as “yet another vote of confidence in the north-east’s thriving auto manufacturing hub”,The news came just a day after the UK and the US agreed a trade deal that dramatically reduced Donald Trump’s tariffs on imports of cars, as well as aluminium and steel,The US has agreed to cut the tariffs on up to 100,000 British cars to 10%, down from the 27.

5% rate Trump initially announced,The US is the main export market for British cars, worth more than £9bn in 2024,Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionKeir Starmer, appearing at a Jaguar Land Rover factory in the West Midlands on Thursday, said the deal would protect British businesses and “save thousands of jobs”,The new AESC plant in Sunderland is expected to be able to provide up to 15,8GWh battery supply when it operates at full capacity.

That will represent an increase of almost six times on the current level of UK gigafactory capacity,The National Wealth Fund’s financial guarantee to AESC will replace an initial £200m short-term bridging loan that it announced in January 2024, before it transitioned from UK Infrastructure Bank to its current structure,The fund, which was launched by Reeves last year, is designed to help projects such as ports, gigafactories, hydrogen and steel,The Leeds-based fund has £27,8bn that it can use to offer loans and make equity investments and financial guarantees.

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Plaque and memorial garden to mark scandal of Britain’s forced adoptions

Survivors of forced adoptions and unmarried mothers’ homes will gather at the first-ever public commemorations of a national scandal affecting hundreds of thousands of British people.A plaque will be unveiled at noon on Saturday at an open event at Rosemundy, St Agnes, in Cornwall. Meanwhile, in Kendal, Cumbria, on 23 May, a memorial garden will be opened, with attendance by invitation.Women from across the country, adoptees and relatives are expected to attend the events – at the locations of two former unmarried mothers’ homes – after years of waiting for a formal UK government apology.There were hundreds of unmarried mothers’ homes operating in the UK between the 1940s and the 1980s

1 day ago
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Hospitals in England reducing staff and services as part of NHS ‘financial reset’

Hospitals in England are cutting staff, closing services and planning to ration care in order to make “eye-watering” savings demanded by NHS bosses.Rehabilitation centres face being shut, talking therapies services cut and beds for end-of-life care reduced as part of efforts by England’s 215 NHS trusts to comply with a “financial reset”.Sir Jim Mackey, NHS England’s new chief executive, has ordered them to make unprecedented savings during 2025-26 to avoid a projected £6.6bn deficit becoming a reality.But trust bosses are warning that delivering what for some equates to 12% of their entire budget in “efficiency savings” will affect patients and waiting times

1 day ago
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Eve Thompson obituary

My grandmother Eve Thompson, who has died aged 95, was variously a theatre stage manager, a secretary and a nursery nurse – until later in life she became involved in voluntary work and advocacy, particularly in relation to mental health.After Eve’s son Ben was diagnosed with schizophrenia in the early 1980s, she volunteered for the National Schizophrenia Fellowship (now Rethink Mental Illness), working with service users, carers and professionals to improve services, establish supported housing and ensure families received the help they needed.She became its national chair in 1990, a position she held for five years, and was also a trustee. Outspoken about funding shortfalls, in a 1993 article in the Independent newspaper she said: “The size of the cheque is the most important thing. You cannot make bricks without straw

2 days ago
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A cocktail that’s too much of a good thing | Letters

Regarding the Brompton cocktail, a mixture of heroin and cocaine that was used for severe pain in terminally ill patients (Letters, 6 May), the Glasgow recipe was heroin, cocaine, gin, Largactil and honey. It could be alarmingly effective. Many years ago, my late partner, faced with a patient in intractable pain, issued a prescription for the cocktail.In the middle of evening surgery, my partner was called to an emergency at the local pub. The patient had felt so much better, he decided to go for a drink, and the combination of the Brompton plus the traditional “hauf an’ a hauf” (whisky and ale), had proved too much

2 days ago
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UK woman who took pills during lockdown cleared of illegal abortion

A woman has been cleared of illegally terminating a pregnancy, after taking abortion pills during lockdown.Nicola Packer took the pills at home in November 2020. She had been prescribed mifepristone and misoprostol after a remote consultation.She later delivered a foetus, which the court heard was estimated to be about 26 weeks in gestation, which she brought with her to Chelsea and Westminster hospital, Isleworth crown court heard.She was arrested in hospital and later charged with “unlawfully administering to herself a poison or other noxious thing” with the “intent to procure a miscarriage”

2 days ago
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At least 216 children died in first high severity US flu season in seven years, CDC says

At least 216 children have died of influenza in the US during the last flu season in what the US Centers for Disease Control and Prevention (CDC) said was classified as the first high severity season overall and for all age groups since 2017-2018.That number marks the highest pediatric death toll in 15 years; the previous high reported for a regular (non-pandemic) season was 236 pediatric deaths in the 2009-2010 season, according to the CDC. More recently, 207 pediatric deaths were reported during the 2023-2024 season.Based on data from FluSurv-NET, the cumulative hospitalization rate for this season is the highest observed since the 2010-2011 season. It estimates that there have been at least 47m illnesses, 610,000 hospitalizations and 26,000 deaths from flu so far this season

2 days ago
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England Lion McCann fires up Notts but champions Surrey struggle

about 16 hours ago
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Pollock a proud Lion after ‘nailing it’ for Northampton and England

about 17 hours ago
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England open to hosting IPL after border hostilities prompt suspension

about 19 hours ago
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UNC says Bill Belichick’s girlfriend still welcome at school despite reports

about 20 hours ago
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Brains before brawn in modern rugby | Letters

about 20 hours ago
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Competitive Itoje willing to learn from Mount Rushmore of Lions captains

about 20 hours ago