Britishvolt receives government, private funding for UK gigafactory construction

UK-based battery maker Britishvolt has received funding from the UK government, as well as GBP1.7 billion ($2.3 billion) from private investors Tritax and abrdn for the construction of its gigafactory in Blyth, Northumberland, it said Jan. 21.

When contacted by S&P Global Platts, Britishvolt was unable to disclose the amount of government funding, although a source close to the matter said it was understood to be in the region of GBP100 million.

The UK Government will provide the funding support through the Automotive Transformation Fund, delivered by the Advanced Propulsion Center, or APC.

The ATF is a government funding program that aims to create a sustainable, zero emission automotive supply chain in the UK and help deliver the government's 10-point plan for a green industrial revolution and its Transport Decarbonization Plan.

The investment "underscores the government's ambitions for the UK to be a world leader in the battery industry, having already established a unique and impressive ecosystem including WMG, University of Warwick, the Advanced Propulsion Center, The Faraday Institute and UK Battery Industrialisation Centre," UK business secretary Kwasi Kwarteng said.

In addition, private investment firms Tritax and abrdn have teamed to become a Britishvolt partner to fund the construction of the gigafactory's shell and core and to develop the associated supplier park, Britishvolt said.

Abrdn -- which has global real assets and investment capabilities -- owns a 60% stake in Tritax Management, which focuses on investments into the UK and European logistics real estate.

The battery maker is building a 30 GWh gigafactory in phases, which will manufacture enough battery cells a year for over 300,000 electric vehicle battery packs, equivalent to around 25% of current UK vehicle manufacturing.

The APC has found that the UK will need over 90GWh/year of batteries for autos and light commercials by 2030, represents over 11% of Europe's total demand, Britishvolt chairman Peter Rolton said.

"The news is the first step in creating a commercialized battery ecosystem, that perfectly aligns with the existing R&D ecosystem," Rolton said.

"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," he added.

Britishvolt is continuing discussions with customers, automakers and other companies and said it was due to make a number of announcements in the coming weeks, including customer memorandum of understandings and research and development collaborations, relationships with UK automotive sports car brands and technology releases.