UK battery cell manufacturer Volklec has received new government backing to accelerate its shift from near-term power cell production to sovereign, large-scale manufacturing. The combined public and private investment will support an expansion of Volklec’s UK operations, increasing capacity from 1 GWh to 10 GWh through a planned gigafactory.
The funding is provided through DRIVE35, a £4 billion programme delivered by the Advanced Propulsion Centre UK in partnership with Innovate UK and the Department for Business and Trade. DRIVE35 aims to spur innovation, scale-up and industrial transformation across the UK automotive sector.
With this backing, Volklec will advance two key initiatives to industrialise and scale domestic battery cell production.
First, in collaboration with the UK Battery Industrialisation Centre (UKBIC) and AIH Group, the company will enhance its 1 GWh power cell manufacturing capabilities. This effort is expected to accelerate the deployment of British-made battery cells to market.
Second, with strategic support from Arcadis and the High Speed Sustainable Manufacturing Institute (HSSMI), Volklec will progress plans for the UK’s first independent 10 GWh battery gigafactory.
These programmes are designed to rapidly scale UK battery output to meet industrial requirements and secure a reliable onshore supply chain. By reinforcing domestic manufacturing capacity, Volklec aims to bridge the gap between battery innovation and large-scale production, serving critical sectors such as automotive, defence and aerospace that increasingly require locally produced energy storage solutions.
Founder Imran Khatri noted that the UK’s limited manufacturing capacity has created bottlenecks, leaving high-value industries exposed to global supply chain disruptions. He emphasized that Volklec’s staged, de-risked approach leverages proven, production-ready cell technology alongside existing industrial infrastructure. This strategy enables the company to deliver immediate capacity while building toward giga-scale production.
Government-backed initiatives like DRIVE35 represent important milestones in strengthening the UK’s industrial base. Sustained public investment is expected to provide the confidence needed to attract private capital, accelerate industrialisation and support the delivery of essential battery manufacturing infrastructure in the UK.
Source: VOLKLEC
