The company aims to raise $1.26bn to construct a 10GWh factory, creating 1,000 jobs by 2030.
The initiative includes a technology and knowledge transfer agreement with Far East Battery, a China-based subsidiary of Far East Smart Energy. This collaboration provides access to engineering expertise, manufacturing capabilities, and raw materials. Volkec will produce advanced lithium-ion batteries in the UK, with production set to start later in 2025 at the UK Battery Industrialisation Centre (UKBIC) in Coventry. A specialized team from Far East Battery will assist during the initial phase.
The company plans to raise £1bn to establish the gigafactory, which is expected to create 1,000 jobs by 2030. If successful, Volkec could become the UK’s only large-scale independent battery manufacturer, following the collapse of Britishvolt in 2023. The project focuses on meeting the growing demand for reliable battery supplies in the UK, particularly in specialized and high-performance sectors.
Phil Popham, Volkec’s executive director, 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.”
Volkec will begin by producing cylindrical nickel-rich battery cells for e-bikes and energy storage. Later, it will expand to manufacture power cells for automotive, aerospace, and marine industries. The company will utilize UKBIC’s existing 100 megawatt hours production line for energy cells. By the end of 2026, a 1GWh line will be added to support power cell production.
Currently, Volkec is engaging with potential customers, focusing on low-volume manufacturers unable to develop their own gigafactories. The project aims to address gaps in the UK’s battery supply chain while leveraging international expertise to ensure quality and scalability. Production timelines and investment plans remain on track, with the initiative positioned to contribute to the UK’s industrial and economic goals by 2030.
