Startups Give U.K. Hope in the Battery Manufacturing Race

  • This article first appeared on the BNEF mobile app and the Bloomberg Terminal.
  • Companies to set up 30GWh facility at undetermined location
  • BloombergNEF estimates capital investment cost of $3 billion

Two startups, AMTE Power and Britishvolt, are set to help save the U.K.’s battery manufacturing ambitions. The companies have announced that they will build a 30 gigawatt-hour, or larger, facility in the country.

The U.K. has been trying to develop lithium-ion battery manufacturing in order to help it secure its automotive industry as the vehicle market electrifies. In 2018, the government launched the £246 million Faraday Battery Challenge to help develop industry know-how, support startups and attract battery manufacturing. However, uncertainties around a post-Brexit U.K. resulted in companies like Tesla turning to Germany to build their European facilities.

Based on BloombergNEF’s Bottom-Up Battery Manufacturing Cost Model, a 30GWh facility producing battery packs and cells would cost more than $3 billion to build in the U.K.

The facility is expected to create 4,000 jobs. The location and expected commissioning date have not yet been announced.

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