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The Government has offered funding to UK battery company Britishvolt, which will be building the factory It in Blyth, Northumberland It is set to receive funding through the Government’s Automotive Transformation Fund (ATF). It is hoped that the Government’s support will help to unlock more support from private investors and could create around 8000 jobs. The factory is set to produce enough batteries for over 300,000 electric vehicles each year once complete.

Mr Johnson has already signalled his support for the car industry’s transition to a net-zero future, with plans to ban the sale of petrol and diesel cars by 2030.

This was a feature of his “10 Point Plan for a Green Industrial Revolution”.

The Prime Minister 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 Secretray Kwasi Kwarteng called the announcement a “major boost”.

He 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 UK’s retains its place as one of the best locations in the world for auto manufacturing.”

David C Bannerman, a former Tory MEP, hailed the announcement as “great Brexit news”.

He wrote on Twitter: “Great Brexit news. This is helped by not being in EU Single Market, but having access to it.”

It comes as the UK has been significantly ramping up its EV market.

Last month, Express.co.uk spoke to EV expert James Morris.

He said Britain’s EV industry has seen some benefits since leaving the EU.

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Mr Morris told Express.co.uk: “The thing that remains after Brexit is that there is less bureaucracy for manufacturers to set up in the UK.

“The unions are weaker in this country than they are in Europe and that means companies can change their policies more easily.

“And I think governments in general, Labour or Conservative are more willing to do things for industry than some European countries are.”

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