Battery manufacturer Volklec has joined forces with Chinese firm Far East Battery (FEB) as part of its long-term ambition to establish a 10GWh gigafactory in Coventry by the end of the decade.

The Coventry-based company has signed an exclusive licence agreement with FEB to support the production of advanced lithium-ion batteries at the UK Battery Industrialisation Centre, where manufacturing is set to begin later this year.

Phil Popham, former chief executive of Lotus Cars and now executive director at Volklec, highlighted the importance of securing the UK’s battery supply chain. He said: “There is no greater transformation today than the electric revolution in transport and mobility. The British start-up scene is thriving, but there is a substantial gap in the supply chain. Our mission is to help these innovators thrive.”

Volklec plans to invest over £1bn in the development of its gigafactory, with Coventry emerging as a potential location. The company is reportedly in discussions with Coventry City Council to take over the proposed gigafactory site at Coventry Airport, which has yet to secure an investor despite planning permission being granted three years ago.

The West Midlands Combined Authority recently announced a £23m funding package to unlock the site’s potential, including the installation of a dedicated energy supply to support large-scale battery production. With permission set to expire in March, the council remains confident it will secure an extension for another two years.

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