Battery firm announces gigafactory plan

Talks have taken place with a battery firm about the possibility of building a gigafactory in Coventry.

Manufacturing firm Volklec has announced it will begin producing batteries at the UK Battery Industrialisation Centre and hopes to ultimately build a £1bn gigafactory in the next five years.

Although no final decision has been made about the location talks have taken place with the city council about it being built at neighbouring Coventry Airport.

Plans for a gigafactory (a large factory for electric vehicle batteries) at the airport site have been talked about for the best part of a decade.

According to the latest figures obtained by the BBC, £25.25m of taxpayers money has been committed to plans to build an electric battery gigafactory at Coventry Airport project since 2021.

Those funds have come via the West Midlands Combined Authority and Coventry City Council - with an additional £2m pledged by Coventry Airport Limited.

Yet, to date, no firm has committed to the project and there have been no visible signs of progress.

Councillor Jim O'Boyle, cabinet member for jobs at the city council, confirmed talks had been held with Volklec.

He said a gigafactory at the airport "had to happen" and added "I think with the right will, and the right people, it won't be long before we can make a proper announcement."

Asked about his hopes of securing investment from central government to kick start the project, he said: "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."

Volklec's first batteries are expected to roll of the production line at the UKBIC before the end of the year. About 100 jobs will be created initially and there are hopes 1,000 jobs will be created if a new gigafactory is built.

Phil Popham, executive director of Volklec, said millions of power cells would be built under an agreement with Chinese partner Far East Battery and would be used to power everything from road vehicles to marine technology.

He said it was "too early to say" if Coventry would be the location.

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