In what Volklec is describing as a first-of-its-kind technology and knowledge transfer agreement, the company 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), supported by a delivery partnership team of specialists from FEB in China to ensure a high yield, high quality manufacturing line in readiness for the start of production in Coventry.
Two specifications of advanced lithium-ion 21700 cylindrical battery cells will be manufactured by Volklec. First to production will be a proven energy cell – a compact cylindrical cell using NMC chemistry to serve the broad e-mobility and energy storage sectors.
This will then be followed by the launch of a 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 company’s strategic roadmap includes a dedicated 10GWh gigafactory representing an investment of more than £1bn and the creation of more than 1,000 highly skilled jobs by the end of the decade.
Commenting Executive Director, Phil Popham, said, “There is an urgent need for new independent manufacturers to secure the battery supply chain in the UK. While the British start-up scene is thriving, from motorsport to heavy duty off-highway and most things in between, 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.”
To date the UK has struggled to attract investment in battery manufacturing and there are just two companies with gigafactories in the UK: the Chinese-owned AESC, which supplies Nissan’s Sunderland factory, and Agratas, owned by the Indian conglomerate Tata, which is building a factory in Somerset to supply batteries to JLR, the maker of Jaguar and Land Rover cars.
Those factories are aimed at producing batteries with total capacities of 38GWh and 40GWh respectively – enough for hundreds of thousands of cars apiece.
While several British startups – most notably BritishVolt – have fallen into bankruptcy, Popham suggested that Volklec had learned from their mistakes, and would be taking a “phased” approach that “takes out as much of the risk as possible”.
Volktec will use FEB’s technology, bringing in its technicians to mirror the manufacturing processes already used in China, and will buy materials from its suppliers at the cost available to a larger company.
“Battery manufacturing is complex. The engineering is complex. It takes time, and it takes investment,” Popham added.
