Phil Popham, the former chief executive of Lotus and current executive director of British battery company Volklec, has revealed plans to establish a £1 billion battery gigafactory in the United Kingdom in collaboration with a Chinese battery firm. The project aims to achieve a production capacity of 10 gigawatt-hours (GWh) by the end of the decade.
Volklec intends to commence production at the publicly funded UK Battery Industrialisation Centre (UKBIC) later this year. The factory will focus on producing battery cells for high-performance automotive, aerospace, and maritime applications. This development marks a strategic effort to strengthen the UK’s domestic battery manufacturing sector following the bankruptcies of Britishvolt and AMTE Power in 2023, as well as the European leader Northvolt’s declaration of bankruptcy last year.
European battery manufacturers have encountered difficulties due to fluctuating electric vehicle demand and intense competition from Chinese producers who have successfully reduced prices. Presently, the UK hosts only one gigafactory, an AESC facility supporting Nissan’s operations in Sunderland.
Popham, who led Lotus from 2018 to 2021 after serving at Jaguar Land Rover, highlighted ongoing concerns among manufacturers regarding supply stability. He stated, “We think there’s a market first for a UK, independent battery manufacturer.”
Volklec has entered a licensing agreement with China’s Far East Battery, which allows the company to manufacture battery designs at the UKBIC and source battery cells from the Chinese partner as production scales up. Popham emphasized the importance of a pragmatic approach, noting, “We are opting to license proven technology, which constitutes a modest investment compared to those that have come before us.”
Supported by the investment group Frontive, Volklec has raised approximately £20 million to date and estimates needing around £100 million to reach significant manufacturing capacity. The ultimate goal is to secure a £1 billion investment to build the 10 GWh factory, in anticipation of Britain requiring an estimated 200 GWh of battery capacity by 2040 to meet future demand.
Looking forward, Popham mentioned that potential customers are increasingly concerned about long-term supply, origin regulations, and tariffs. While the project does not heavily rely on government funding, Volklec may seek support as it expands operations. The company plans to transition from producing energy cells to developing higher-performance power cells for use in sports cars and aerospace sectors.
Source: Telegraph
