The Anglesey Freeport has taken a major step forward after ministers signed a key agreement with council chiefs.

Anglesey Council says around £25 million in funding has been unlocked after signing a memorandum of understanding (MoU) with both the UK and Welsh Governments.

Two freeports in Wales - including the Celtic Freeport of Port Talbot and Milford Haven - have been created in an effort to attract £6.5 billion in investment and create around 17,000 jobs through tax and custom breaks for business and funding for major projects.

The Ynys Môn Freeport is expect to be fully operational by the end of spring.

Dylan J Williams, chief executive of Anglesey Council, said: "This brings together all partners behind a shared commitment to deliver new opportunities, investment and skilled jobs for our communities."

"The MoU provides the framework we need to work effectively with both Governments, Stena Line and other partners as we look ahead with confidence to the delivery phase later this year."

"Anglesey Freeport represents a significant opportunity, and today's formal agreement strengthens our ability to realise those ambitions."

Jo Stevens, Welsh Secretary of State, added: "Today’s news is a significant moment for the delivery of Anglesey’s Freeport which will be vital for kickstarting economic growth and is projected to create 5,000 jobs by 2030."

"This follows the UK Government’s recent announcements of new nuclear for Wylfa and a north Wales AI Growth Zone, which taken together will be transformational for people in north Wales, providing opportunities for generations to come."

Preparation work for the freeport is well underway, including governance, designating tax sites and engagement with landowners.

Last month, the go-ahead was given to create a £19.1m 'freeport gateway' on the site of the former Eastman Peboc chemical works on the outskirts of Llangefni, which closed in 2008.

223 jobs will be created, with the county council planning to expand and improve access to the Tregarnedd Industrial Park when it buys the land.

It will be one of six tax and custom sites that make up the freeport, including:

• A second building on land at the Menai Science Park (M-SParc) in Gaerwen
• The former Octel site in Amlwch and the former Shell oil depot in Rhosgoch - with improved access to the A5025
• The new Prosperity Parc in Holyhead, taking in the site of the former Anglesey Aluminium works and the Parc Cybi business park

The leader of Anglesey Council said the MoU agreement represents "a major milestone in delivering new economic opportunities for the island".

Cllr Gary Pritchard added: "The agreement confirms a shared commitment with both governments, and Stena Line to establish a Freeport that can attract investment, support innovation, and create skilled jobs for local communities."

"Securing seed capital is especially important, as it allows essential early work to begin and demonstrates confidence in Anglesey's strategic potential."

"With this foundation in place, the council with other partners can accelerate plans that strengthen the island's role in energy, manufacturing, and trade, helping drive long‑term prosperity across Ynys Môn and North Wales."

The Welsh Government says funding will be provided for the next four years up to 2030, preparing the six tax sites for investment from the private sector.

Economy Secretary, Rebecca Evans, said: "By putting critical infrastructure in place now, we are positioning Anglesey to take full advantage of the Freeport, the renewed momentum at Wylfa, and the opportunities of the North Wales AI Growth Zone."

"This is a clear message: we are backing Welsh communities with the tools they need to compete, to attract high quality jobs, and to shape the industries that will define the economy of the future."

The freeport will focus on innovation, low carbon energy and international trade, aiming to boost economic activity, reduce out-migration and support the Welsh language locally.

Stena Line, the owners of Holyhead port, are running the freeport alongside the council, who are managing government funding.

Ian Hamilton, Stena Line UK's executive chair, added: "This announcement marks the start of Anglesey Freeport's operational stage, following the work undertaken to date to secure Freeport status, finalise our business cases, and prepare our tax sites for investment."

"We are grateful to the UK and Welsh governments for their ongoing support and will continue to work with both governments and all Freeport partners to deliver our vision of providing jobs and economic growth for Anglesey and North Wales, while protecting the Welsh language and culture."