Manufacturing company Volklec has announced plans to produce batteries at the UK Battery Industrialisation Centre (UKBIC) and aims to develop a £1 billion gigafactory in Coventry within the next five years. The proposed gigafactory, which would manufacture batteries for electric vehicles, is currently under discussion with Coventry City Council regarding its potential location at Coventry Airport. These discussions have been ongoing for nearly a decade, although no final decision on the site has been made.
Councillor Jim O’Boyle, the cabinet member for jobs at Coventry City Council, confirmed that talks with Volklec have taken place. According to recent information obtained by the BBC, a total of £25.25 million in taxpayer funds has been allocated towards the gigafactory project at Coventry Airport since 2021. This funding has been provided by the West Midlands Combined Authority and Coventry City Council, with an additional £2 million committed by Coventry Airport Limited. However, as of now, no company has formally committed to the project, and there have been no significant signs of progress.
Councillor O’Boyle expressed optimism about the project, stating that establishing a gigafactory at the airport “had to happen.” He added, “I think with the right will, and the right people, it won’t be long before we can make a proper announcement.” When questioned about securing investment from the central government to initiate the project, O’Boyle remained confident, noting that government grants are typically essential for the establishment of gigafactories worldwide.
“I’m very confident that will happen. There hasn’t been one single gigafactory anywhere in the world that hasn’t benefitted from the relevant government providing grants to make that happen.”
Phil Popham, executive director at Volklec, remarked that it is “too early to say” where the firm will establish its operations. The initial batteries produced at the UKBIC are expected to roll off the production line by the end of the year, with around 100 jobs created initially. Should the gigafactory be built, there is hope for an additional 1,000 jobs.
Popham also highlighted that millions of power cells are expected to be produced through an agreement with Chinese partner Far East Battery. These power cells will be utilized in various applications, including road vehicles and marine technology. Despite these developments, Popham reiterated that it is too soon to confirm Coventry as the final location for the gigafactory.
The proposed gigafactory represents a significant investment in the electric vehicle sector and aligns with broader efforts to advance battery technology and manufacturing in the UK.
Source: BBC News
