A new £1 billion battery gigafactory is set to be established in the UK, with the potential to create up to 1,000 jobs by 2030. Independent battery manufacturer Volklec has unveiled plans for this substantial facility in the Midlands after entering a licensing agreement with Far East Battery (FEB), a prominent Chinese battery specialist.
This initiative will lead to the development of a state-of-the-art 10GWh factory that will produce battery cells for mainstream electric vehicles, energy storage solutions, and specialized EV applications. Volklec is slated to commence production of cells using FEB’s technology later this year at the existing 100MWh production line located at the UK Battery Industrialisation Centre (UKBIC) near Coventry. Following this, the company intends to begin construction on its own gigafactory, which it aims to have fully operational with up to 1,000 skilled workers by 2030.
Volklec is guided by a team of former leaders from major automotive companies such as JLR, Lotus, and McLaren Applied. They aim to fill a crucial gap between large-scale gigafactories that supply mainstream Original Equipment Manufacturers (OEMs) and the specific needs of smaller niche manufacturers. Phil Popham, the executive director of Volklec, emphasized the urgent need for independent manufacturers to secure the battery supply chain in the UK.
He stated, “There is no greater transformation today than the electric revolution in transport and mobility, and the British start-up scene is thriving, from motorsport to heavy-duty off-highway vehicles and everything in between. However, there is a significant gap in the supply chain. The UK excels in specialist and high-performance sectors that require assured supply, quality, and reliability. Our mission is to support these innovators in flourishing.”
Under the licensing agreement with FEB, Volklec will produce two types of advanced lithium-ion 21700 cells. The first will be a well-established NMC cylindrical design aimed at the broad e-mobility and energy storage markets. The second is a new “innovative power cell” tailored for high-value and specialist applications across automotive, aerospace, marine, and off-highway sectors, indicating its potential use in eVTOL aircraft, electric boats, and the construction industry.
The UK is recognized as a promising hub for EV innovation, bolstered by initiatives like the West Midlands Gigafactory and UKBIC, which assist start-ups in developing technology. Although the country faced a setback in 2023 with the collapse of the BritishVolt gigafactory project, progress has been made with plans for a £4 billion battery plant in Somerset, and Nissan’s partner AESC has received approval to expand its battery plant in Sunderland to support the production of the new Leaf, Juke, and Qashqai.
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