Britishvolt, Sunbelt partner to develop heavy plant, equipment battery solutions

UK-based battery developer Britishvolt has partnered with Sunbelt Rentals to support the development of its first full-scale 38 GWh battery gigafactory in Northumberland, as well as to develop heavy plant and equipment battery solutions, Britishvolt said June 1.

Under the long-term strategic partnership, the two companies will operate an onsite rental facility at the gigafactory.

"The benefits of having a rental facility on site to meet our demands for equipment will mean a lower carbon footprint travelling to and from rental facilities," Britishvolt Head of ESG Craig Woodburn told S&P Global Commodity Insights, adding that one central provider would allow efficiencies in provision of equipment.

"The fact that Britishvolt and Sunbelt will jointly operate an 'onsite rental facility' is a huge boost to our ESG strategy and brings with it 'economies of carbon' as it will dramatically reduce the construction supply chain carbon footprint," Britishvolt Chief Governance Officer Tom Cowling said.

The companies will also collaborate to develop heavy industry and equipment battery cell solutions to help decarbonize the construction and equipment rental sectors, Britishvolt said.

Battery metal prices, particularly lithium, have been strong in 2022, with the Platts seaborne lithium carbonate and lithium hydroxide assessments from S&P Global surging 122% and 146%, respectively, since the start of 2022 at $75,000/mt CIF North Asia and at $78,000/mt CIF North Asia as of May 31.

"There is an increasing market demand for alternative powered equipment to support our varied customer base across multiple sectors," Sunbelt Rentals CEO Andy Wright said, adding that the partnership would help it service that demand in the future.

"This is an exciting opportunity for Sunbelt Rentals to support the future of green energy... This is more than just a commercial collaboration, it's an opportunity for us to support an important part of the future of renewable energy in the UK," Wright added.

One banking source told S&P Global that they understood that Sunbelt parent company Ashtead had made an investment into Britishvolt similar to that invested by Glencore, although this could not be confirmed by Britishvolt.

In August 2021, Glencore and Britishvolt signed a strategic agreement for the long-term supply of cobalt and the former also invested an undisclosed amount for a stake in the battery maker.

Britishvolt started construction on its GBP3.8 billion lithium-ion battery gigafactory in last September. The site, which will be built in four phases of around 10 GWh, has targeted 2024 as the start of Phase One production.

It also plans to build a second 60 GWh gigafactory in Quebec and is in talks with the Canadian government concerning its expansion plans.

Earlier in May, Britishvolt agreed to acquire advanced technology battery cell developer and manufacturer EAS from Monbat Group for Eur36 million ($38.6 million), funded through a combination of cash and a share issuance, making the Monbat Group an investor in Britishvolt.