How domestic battery production could turbocharge the market

EV battery firm Britishvolt is being boosted by government funding to deliver its gigafactory and accelerate the country’s move to electrification

There are an enormous number of factors that need to be met to make sure the automotive industry can go electric. Not least is the battery supply chain. No batteries means no EVs after all.

UK firm Britishvolt has been in the headlines as it works towards creating a gigafactory capable of producing enough cells for over 300,000 electric vehicle battery packs a year. It’s a lofty target and requires big investment. And now the government has stepped forward to back the company.

Britishvolt has received an in principle offer through the Automotive Transformation Fund that has helped open the door to huge support from the project’s long-term private partners including Trixtax and abrdn that will deliver £1.7 billion.

It’s another step in making domestic firms a core part of the road to electrification, not just in the UK but on the global stage too.

Like it or not, sales of electric vehicles continue to strengthen and domestic batteries are a vital ingredient in meeting demand. British consumers bought more electric cars in 2021 than the previous five years combined, and the trajectory is set to only accelerate.

“This is a major step in putting the UK at the forefront of the global energy transition, unlocking huge private sector investment that will develop the technology and skills required for Britain to play its part in the next industrial revolution.

“The news is the first step in creating a commercialised battery ecosystem, that perfectly aligns with the existing R&D ecosystem. Britishvolt will be the anchor for attracting further sections of the supply chain, be it refining or recycling, to co-locate on the Britishvolt site. This not only shortens supply chains but also allows for partners to access the abundance of renewable energy on site to truly power low carbon, sustainable battery production.

“It will also allow us to catapult our tailormade business proposition on a global scale, with sites already selected for development in other countries,” said Peter Rolton, Britishvolt Executive Chairman.”

The Britishvolt project could bring around 3,000 direct highly-skilled jobs and another 5,000 indirect wider supply chain roles to the UK. And the knock on impact for the rest of the industry as more EVs hit the road could be significantly wider.