Plans for £1bn Midlands battery factory move forward with Far East deal

Coventry-based Volklec has announced an exclusive license agreement with Chinese battery supplier, Far East Battery (FEB).

In what the company is decribing as a "first-of-its-kind" technology and knowledge transfer agreement, Volklec will manufacture advanced lithium-ion batteries in the UK supported by a team of specialists from FEB in China.

In a statement, the company said an additional 1GWh production line would be installed by the end of 2026 to manufacture the new power cell - which the firm says is a step towards its production targets, which include a £1bn dedicated 10GWh gigafactory set to create more than 1,000 highly skilled jobs by the end of the decade.  

“There is an urgent need for new independent manufacturers to secure the battery supply chain in the UK," said Executive Director, Phil Popham.  

"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.”

The company says two specifications of advanced lithium-ion battery cells will be manufactured by Volklec as part of the arrangement. First to production will be a proven energy cell – a "compact cylindrical cell" which is used in the e-mobility and energy storage sectors.

This is set to be followed by the launch of an innovative power cell aimed primarily at servicing the high value manufacturing sector, in particular specialist applications within automotive, aerospace, marine and off-highway.

Production will start later this year from Volklec’s launch base at the UK Battery Industrialisation Centre (UKBIC) in Coventry.