Volklec, a Midlands-based battery manufacturing business, is planning to build batteries for  energy storage solutions and EV power in Coventry under a new licensing deal.

Two specifications of advanced lithium-ion 21700 cylindrical battery cells will be manufactured by Volklec

The business has inked a technology and knowledge transfer agreement with China’s Far East Battery (FEB) to manufacture advanced lithium-ion batteries in the UK.

Production starts later this year from Volklec’s launch base at the UK Battery Industrialisation Centre (UKBIC), supported by a delivery partnership team of specialists from FEB in China to ensure a high-yield, high-quality manufacturing line.

Two specifications of advanced lithium-ion 21700 cylindrical battery cells will be manufactured by Volklec. First to production will be a proven energy cell – a compact cylindrical cell using NMC chemistry to serve the broad e-mobility and energy storage sectors.

This will be followed by the launch of a power cell aimed primarily at servicing the high-value manufacturing sector, in particular specialist applications within automotive, aerospace, marine and off-highway.

Initially, Volklec will produce batteries using a current 100MW line from the UK Battery Industrialisation Centre (UKBIC). An additional 1GWh production line will be installed by the end of 2026 to manufacture the power cell and Volklec is also planning a dedicated 10GWh gigafactory by the end of the decade, representing an investment of more than £1bn (€1.2bn).

The business says its fast-to-market, low-risk design and delivery strategy will bridge the gap between the established supply lines to large OEMs – which often have dedicated gigafactories lined up – and the lower-volume niche players seeking surety of supply.

Executive director Phil Popham – who previously ran Jaguar Land Rover operations globally, served as CEO of Lotus Cars and also Sunseeker in the luxury marine sector – said: “There is an urgent need for new independent manufacturers to secure the battery supply chain in the UK.  There is no greater transformation today than the electric revolution in transport and mobility, and the British start-up scene is thriving, from motorsport to heavy duty off-highway and most things in between. But there is a substantial gap in the supply chain. The UK is particularly strong in the specialist and high-performance sectors which need surety of supply with quality and reliability. Our mission is to help these innovators thrive.”