British startup Volklec has entered into a licensing agreement with China’s Far East Battery (FEB) to utilize FEB’s technology in the production of batteries for energy storage and electric vehicles (EVs). FEB, a subsidiary of Far East Smarter Energy Co, will also provide engineering support and other assistance to help Volklec expand its manufacturing capabilities at the UK Battery Industrialisation Centre (UKBIC) in Coventry. Additionally, FEB will offer Volklec access to its supply chain, aiming to reduce production costs.
The collaboration comes at a time when European battery manufacturers are grappling with the dual challenges of developing viable battery chemistries and scaling operations within an industry largely dominated by Chinese firms. Notable setbacks in the sector, such as the struggles faced by Britishvolt and the restructuring of Sweden’s Northvolt, highlight the difficulties European companies encounter in securing necessary funding and expertise without external support. Industry analysts anticipate that more European battery firms may seek Chinese partnerships to achieve growth and competitiveness.
Volklec has announced plans to commence production of “energy cell” batteries by late 2025. These batteries are intended for use in e-scooters, e-bikes, EV chargers, and energy storage systems. The company aims to introduce a “power cell” designed specifically for electric vehicles in the latter half of 2026. To support the production of energy cells, UK investment firm Frontive Group has committed £20 million ($25.3 million). Furthermore, Volklec’s executive director, Phil Popham, stated that an additional £80 million is required to establish a new 1 gigawatt-hour (GWh) production line at the UKBIC for the power cells.
Volklec is currently in discussions with several automakers regarding the use of its battery cells, although specific companies were not disclosed. Popham noted that FEB has already supplied batteries for approximately one million EVs.
“Volklec’s approach is all about getting to market quickly using proven technology to give confidence to customers and investors,” Popham said. “We know where we’re going to buy it, where we’ll produce it and what we’ll produce.”
The partnership with FEB is expected to play a critical role in Volklec’s efforts to scale production and compete effectively in the growing EV market. By combining FEB’s technological expertise and supply chain advantages with Volklec’s manufacturing initiatives, the collaboration aims to enhance the availability and affordability of EV batteries in the UK and beyond.
Source: Reuters
