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UK startup Britishvolt gains £40m from Glencore for EV battery factory

UK startup Britishvolt gains £40m from Glencore for EV battery factory
UK startup Britishvolt gains £40m from Glencore for EV battery factory

Britishvolt, the UK-based battery manufacturing startup, has reportedly secured an investment worth £40 million from Glencore for its ambitious plan to establish one of the United Kingdom's few large-scale battery facilities.

It plans to raise £200 million in the third round of finance, with Glencore acting as the anchor investor. Britishvolt had already received millions of pounds from the FTSE 100 miner in previous fundraising rounds, which valued the battery business at more than $1 billion (£740 million).

As the UK automobile sector transitions away from internal combustion engines and moves towards zero carbon emission battery electric vehicles, the battery factory initiative is considered critical to the sector's prospects.

While Japan, China, as well as South Korea have dominated the global battery supply market, the United States and Europe are seen to be catching up.

The Britishvolt plan has already received £100 million from the British government's fund for automotive transformation, which continues to preserve the vehicle sector and thousands of employments in the country. Britishvolt is supposedly working on developing the EV battery tech before a facility is constructed at the UK Battery Industrialization Center in Coventry.

Currently, preparatory work at the Blyth, Northumberland site has already begun, with actual construction scheduled to begin in April. The construction of the said project is being supported by, Abrdn, an institutional investor, previously recognized as Standard Life Aberdeen, as well as Tritax, a realty investor partly owned by Abrdn, through a sale-and-leaseback deal.

The factory, as well as the accompanying infrastructure, such as distributing the massive amounts of energy needed to develop vehicle batteries, as well as a supplier park and rail connection alongside the primary site, will cost £1.7 billion in total. As the project progresses, the funds will be released in installments.

Britishvolt has inked memorandums of understanding with four different automakers, including Lotus, the sports car producer. Although the agreements do not guarantee battery purchases, the company claimed this indicated cumulative demand for batteries with a 7-gigawatt hours capacity by 2024 and 2025, which is a large fraction of the 30GWh it plans to build yearly.

Source credit: https://www.theguardian.com/business/2022/feb/15/britishvolt-secures-40m-investment-for-electric-vehicle-battery-factory

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.