Midlands based battery manufacturing company Volklec has reached an exclusive license agreement with Asian battery supplier Far East Battery (FEB) that could lead to construction of a £1 billion ‘gigafactory’ to produce advanced lithium-ion batteries in the UK.
In what is said to be a first-of-its-kind technology and knowledge transfer agreement, Volklec will manufacture advanced lithium-ion batteries in the UK. Production starts later this year from Volklec’s launch base at the UK Battery Industrialisation Centre (UKBIC). A delivery partnership team of specialists from FEB in China will offer support in preparing a high yield, high quality manufacturing line that will probably be installed in Coventry.
Volklec says its strategic roadmap includes a dedicated 10GWh gigafactory representing an investment of more than £1 billion and creating more than 1,000 highly skilled jobs by the end of the decade. No decision has been made about the location, but talks have been held with the city council about it being built adjacent to Coventry Airport.
Plans for such a gigafactory at the airport site have been talked about for almost ten years. The BBC has reported that some £25.25 million of taxpayers’ money has been committed to plans to build a gigafactory at Coventry Airport since 2021.
Volklec’s first batteries are expected off the production line before the end of the year, with some 100 jobs created initially, and possibly 1,000 jobs if the gigafactory is built.
FEB is a market leader in the design and manufacture of batteries, providing energy storage solutions and EV power globally since 2009. Two specifications of advanced lithium-ion 21700 cylindrical battery cells will be manufactured by Volklec; a proven, compact cylindrical energy cell using NMC chemistry to serve the broad e-mobility and energy storage sectors will be launched first.
This will 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. Volklec will be utilising UKBIC’s current 100MWh line to produce the energy cell, with an additional 1GWh production line to be installed by the end of 2026 to manufacture the power cell.
The Volklec management team is led by seasoned auto industry leader Phil Popham, known as previously running Jaguar Land Rover operations globally, and also serving as CEO of Lotus Cars and also luxury yacht manufacturer Sunseeker.
Mr 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.”
The executive team also includes Ron Lee as Chief Technical and Manufacturing Officer, formerly Global Director of Powertrain Engineering at Jaguar Land Rover; Chief Commercial Officer Shakeel Meharban who was formerly Managing Director for the Automotive Business Unit of McLaren Applied; and Head of Strategy Nikki Rimmington, formerly Strategy Development Director for InoBat Auto.
Volklec says it aims to be a catalyst in powering the transformation of the UK into a global leader in the electric revolution with its fast to market, low-risk design and delivery strategy. Volklec aims to bridge the gap between the established supply lines to large OEMs, some of whom plan to have their own gigafactories, and lower-volume niche players seeking surety of supply.