UK backs EV battery gigafactory to be built on site of former coal plant

Leading UK battery cell developer Britishvolt has received government support for its plans to build an electric vehicle battery gigafactory on the site of the former Blyth coal-fired power station in Northumberland.

Britishvolt and the UK government announced late last week an in-principle offer of government funding through the Automotive Transformation Fund (ATF) for the EV battery gigafactory.

The offer of government-backed funding subsequently allowed Britishvolt to enter into a long-term partnership with local investment managers Trixtax and abrdn that is expected to deliver £1.7 billion in private funding.

Once completed and operational, the Britishvolt gigafactory will produce enough batteries for over 300,000 EVs each year and create 3,000 direct highly skilled jobs and another 5,000 indirect jobs across the wider supply chain.

“This announcement is a major step in putting the UK at the forefront of the global energy transition, unlocking huge private sector investment that will develop the technology and skills required for Britain to play its part in the next industrial revolution,” said Peter Rolton, Britishvolt executive chairman.

“The news is the first step in creating a commercialised battery ecosystem, that perfectly aligns with the existing R&D ecosystem. 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.

“It will also allow us to catapult our unique tailormade business proposition on a global scale, with sites already selected for development in other countries.”

The UK government’s Automotive Transformation Fund currently has access to £850 billion in funding to support its goal of creating a sustainable and zero-emission British automotive supply chain.

The ATF also stands as an integral component of UK Prime Minister Boris Johnson’s 10-point plan for a green industrial revolution and the UK government’s 2030 ban on the sale of new petrol and diesel cars.

News of Britishvolt’s planned gigafactory first began circling in 2020 before it was announced in early 2021 that the company had purchased the 95-hectare site of the former Blyth coal-fired power station to be the site of its first gigafactory.

James Dunlop, the CEO of Tritax Group, said the Blyth plant is “mission critical infrastructure” of national importance. The development will help realise the UK Government’s commitment to deliver British made batteries for the automotive sector in a world leading energy cluster in the Northeast,” he said.