"We're bringing industry, we're bringing manufacturing to an area that has been under invested in frankly and we're bringing thousands of jobs," he said.
Not only are battery packs big and heavy, making local production desirable, they also make up a large proportion of the value of an electric car.
The sale in the UK of new petrol and diesel cars will be banned by 2030, with manufacturers switching to making electric vehicles and requiring huge battery production.
Mr Kwarteng said Britishvolt would help put the UK at the front "in this global race between countries to secure vital battery production".
At full capacity, expected to be achieved by the end of the decade, the factory will produce enough battery cells for more than 300,000 electric vehicle battery packs per year.
Peter Rolton, Britishvolt's executive chairman, told the BBC's Today programme that he would like all of the new jobs at the plant to go to people living in the area, and said the company was setting up a training centre in nearby Ashington.
Mr Rolton said the first batteries ready for use would roll off the production line in 2024.
Last year, Nissan's partner, China's Envision AESC, announced it would build an electric battery plant to supply an expansion of electric vehicle production at the Japanese carmaker's plant in Sunderland.
'Game changer' electric car battery plant approved?
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