Battery Company Volklec to Launch £1 Billion Gigafactory in the UK

Battery Company Plans New £1 Billion Gigafactory

Image: H_Ko/Shutterstock
28 February 2025 | Muriel Cozier

UK startup Volklec is set to manufacture advanced lithium-ion batteries in the UK following an agreement with China’s Far East Battery (FEB) to utilize its technology for battery production. This initiative is part of a broader strategic plan which aims for Volklec to eventually develop a dedicated 10 GWh gigafactory, representing a £1 billion investment and expected to create 1,000 jobs by the end of the decade.

Initial production is slated to commence in 2025 at the UK Battery Industrialisation Centre (UKBIC) in Coventry. Volklec plans to produce two specifications of advanced lithium-ion cylindrical battery cells. The first will cater to the broad e-mobility and energy storage sectors, followed by the launch of an innovative power cell primarily aimed at the high-value manufacturing sector, which includes automotive, aerospace, and marine applications.

The company will utilize UKBIC’s 100MWh line for manufacturing energy cells and plans to install an additional 1GWh production line by the end of 2026 for the power cell. In addition to supplying technology, FEB will provide a team of specialists to ensure a high-yield, high-quality manufacturing process at the UKBIC facility.

UKBIC, which opened in 2021 and is partially funded by a local partnership, serves as the UK’s national manufacturing battery development facility, facilitating scale-up and skills development for the battery sector. Initially established with an investment of £130 million, an additional £74 million has been committed by UK Research and Innovation to enhance the facility by installing a new pilot line that bridges the gap between larger scale production and smaller-scale demonstrators.

Volklec is backed by Frontive Group, which invests across various sectors including energy transition. This development is a positive sign for the UK, especially following the collapse of the UK battery startup Britishvolt in 2023. Britishvolt, which had government backing, planned a £3.8 billion gigafactory in Blyth, Northumberland.

A report from the Faraday Institution last year indicated that by 2030, the UK will require the equivalent of six gigafactories, each producing 20 GWh per year of batteries. By 2040, demand is projected to rise to the equivalent of ten such gigafactories or a smaller number of higher-capacity sites.

Currently, the UK’s gigafactory infrastructure is limited to the AESC plant in Sunderland, where a second gigafactory is expected to open this year, and the Agratas site, which is under construction in Somerset.

Phil Popham, Executive Director of Volklec and former global operations head at Jaguar Land Rover and CEO of Lotus Cars, emphasized the urgent need for new independent manufacturers to secure the battery supply chain in the UK. “There is no greater transformation today than the electric revolution in transport and mobility, and the British startup scene is thriving from motorsport to heavy-duty off-highway applications,” said Popham. “However, there is a significant gap in the supply chain. The UK excels in the specialist and high-performance sectors that demand reliability and quality in their supply chains. Our mission is to support these innovators in thriving.”

Further Reading:
– Can the UK meet electric vehicle battery demands? Experts discuss
– Lithium-ion battery recycling: Measuring the environmental benefits
– UK collaborators move next-generation batteries to the next level

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