Talks with ‘number of EV battery manufacturers’ for gigafactory investment

West Midlands Mayor, Andy Street, says that talks are ongoing with a number of electric vehicle (EV) battery manufacturers after reports suggested a deal was close for a new gigafactory in Coventry.  

Over the weekend, the Sunday Times reported that Chinese company Eve Energy was in advanced talks to build a £1.2 billion factory on the outskirts of Coventry.  

Street said: “Whilst I will not provide a running commentary on ongoing commercial negotiations, it is an established fact that Coventry Airport is the only site in the UK with planning permission for a Gigafactory - sitting within the West Midlands Investment Zone.

“It is also an established fact that we are in discussions with a number of global battery manufacturers about the future occupancy of the site and the nature and progress of these conversations has to remain confidential.

“The West Midlands is the UK’s automotive heartland, and the logical home for the country’s next Gigafactory. We are all working incredibly hard to make that happen, as part of the wider plans to create a UK Centre for Electrification and Clean Energy (Greenpower Park).”

Fleet News reported in October how talks between a company wanting to build a gigafactory in Coventry and several leading Asian EV battery manufacturers were at an advanced stage. 

The plan for a gigafactory in Coventry has been brought forward as part of a public private joint venture partnership between Coventry City Council and Coventry Airport known as the West Midlands Gigafactory.

It released a statement saying that it did not comment on media speculation. It added: “Based in Coventry, West Midlands Gigafactory is the only available site in the UK that sits within an investment zone and has planning permission for a large-scale battery manufacturing facility.

“We are in discussions with a number of global battery manufacturers, but these remain confidential.”

In July last year, Jaguar Land Rover (JLR) owner Tata confirmed it will build a £4bn EV battery factory in the UK. 

The new gigafactory in Somerset, one of the biggest in Europe, will have the capacity to produce 40GWh of cells annually. It will make batteries for JLR and expects to supply other manufacturers, with production starting in 2026.  

The UK currently only has one plant in operation next to Nissan's Sunderland factory, while another proposed battery manufacturer, in the north-east of England, Britishvolt, went into administration at the beginning of last year. 

James Frith, head of Volta Energy Technologies’ European operations, said that the possible deal to build a gigafactory in Coventry will help Britain to “maintain a viable automotive industry” in the future and build on the needed battery technologies.

However, he added: “It is notable that it is once again an overseas company, adding to investments by India’s Tata group who own Agratas and China’s Envision group who own AESC.

“The Government must now support the growing UK battery startup ecosystem, to make sure that while foreign companies are building capacity, it is UK technology that is used in the batteries these facilities will produce.”

Jonathan Carrier, CEO and co-founder of energy storage company Allye, added: “Coventry has worked tirelessly to build a viable solution at the current airport site. Their efforts should be celebrated.

“Together with UKBIC (UK Battery Industrialisation Centre) it cements the area as the heart of the UKs battery cluster.

“However, the UK Government needs to think long term how to support the battery value chain with a cohesive plan to build resiliency.

“The UK is already late to the game. To avoid being a busted flush we need an integrated strategy from precursor materials through to recycling and repurposing.

“We need to do better with our own resources and enable a strong battery ecosystem not just a gigafactory in isolation.”