New £1bn battery gigafactory planned for the UK
A new £1 billion battery plant is set to create up to 1,000 jobs in the UK by 2030.
Independent battery maker Volklec has announced plans for the massive new facility in the Midlands after signing a licensing agreement with major Chinese battery specialist Far East Battery (FEB).
The scheme will see the creation of a brand-new 10GWh factory producing cells for mainstream electric vehicles, energy storage solutions and specialist EV applications.
Volklec will begin production of cells based on FEB’s technology later this year at the existing 100MWh production line at the UK Battery Industrialisation Centre (UKBIC) near Coventry. Following that, it plans to start work on its own ‘gigafactory’ which it says will be fully operational and employ up to 1,000 highly skilled workers by 2030.
Led by former JLR, Lotus and McLaren Applied bosses, Volklec says it aims to bridge a gap between the massive-scale gigafactories supplying mainstream OEMs, and the needs of smaller-scale niche manufacturers.
Its executive director, Phil Popham, said: “There is an 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 start-up scene is thriving, from motorsport to heavy duty off-highway and most things in between. But there is a substantial gap in the supply chain. The UK is particularly strong in the specialist and high-performance sectors which need surety of supply with quality and reliability. Our mission is to help these innovators thrive.”
Under the licensing agreement with FEB, Volklec will manufacture two types of advanced lithium-ion 21700 cells. The first will be a proven NMC cylindrical design intended to serve the broad e-mobility and energy storage sectors.
The second is described as a new ‘innovative power cell’ aimed at high-value and specialist applications within automotive, aerospace, marine and off-highway sectors, suggesting it could be used in eVTOL craft, electric boats and the construction industry.
The UK is seen as a potential hotspot for EV innovation, with the creation of the West Midlands Gigafactory and the UKBIC helping start-ups develop technology. The country’s ambition suffered a blow in 2023 when the planned BritishVolt gigafactory scheme collapsed but since then plans for a £4bn battery plant in Somerset have been confirmed and Nissan’s partner AESC has gained approval to expand its battery plant in Sunderland to support the production of the new Leaf, Juke and Qashqai.
