THE Government has backed plans for a Northumberland electric vehicle battery gigaplant which will employ 3,000 people and create another 5,000 jobs.

Britishvolt's plans for a plant in Blyth are being supported by the Government's Automotive Transformation Fund.

The Government backing is for an undisclosed amount believed to be around £100 million.

The firm said the plant would require £3.8 billion to set up and start production, with the building itself costing £1.7 billion.

It should have the capacity to manufacture 300,000 battery units every year, supplying around 25 per cent of the current UK market.

It was in December 2020 that the firm first announced its intentions to build on a 93-hectare site where Britain's largest coal-burning power station once stood.

The proposals were given the green light by Northumberland County Council in July last year.

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."

Business Secretary Kwazi Kwarteng said: “Today’s news is a major boost for Britain and a resounding vote of confidence in the North East economy.

“Britishvolt’s planned Gigafactory will not only enable the UK to fully capture the benefits of a booming electric vehicle market, but will bring thousands of highly-skilled, well-paid jobs to the North East.

“In this global race between countries to secure vital battery production, this Government is proud to make the investment necessary to ensure the UK retains its place as one of the best locations in the world for auto manufacturing.”

Northumberland County Council Leader Glen Sanderson said: "This is a great day, not just for this part of Northumberland, but also the whole county and the wider region.

“We’ve said since the outset this scheme is a real game changer and to now have Government backing is very welcome news.”