Two manufacturing lines are running at AESC's Sunderland gigafactory — and a third is sitting uninstalled. That idle production line is perhaps the most concrete symbol of how badly the UK's electric vehicle transition has stalled. The Chinese-owned battery maker, which supplies cells to Nissan at the adjacent Japanese carmaker's Wearside plant, was on the verge of signing a supply agreement with Jaguar Land Rover last year. Those talks have since collapsed, and with them, AESC's plans to scale up the largest battery factory in Britain.

The breakdown appears to have had multiple causes. One person familiar with the negotiations said JLR was unwilling to make the formal financial commitments that AESC required before investing in new infrastructure. A separate source pointed to disputes over pricing and delivery timelines. Whatever the precise reason, the consequences are tangible: AESC has had to delay its ramp-up plans not only because of the failed JLR deal, but also because demand from Nissan itself has come in below earlier forecasts.

JLR is understood to have since secured battery agreements with other suppliers, while its sister company, Agratas, continues to build a dedicated gigafactory in Somerset — a plant that is not expected to begin production until 2027, and which has already encountered construction difficulties that could push that date back further. The Sunderland setback is far from an isolated case. Across Europe, several large-scale battery projects have entered bankruptcy, while others have dramatically reduced their ambitions in a market increasingly dominated by Chinese manufacturers such as CATL and BYD. Andy Burnham's government signalled on Friday that it may soften the UK's electric car sales targets still further — a concession that, while politically pragmatic, risks undermining the very supply-chain investment it claims to support.