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Battery Technology

British Battery startup Volklec announces £1 billion gigafactory plans

Web TeamBy Web TeamFebruary 26, 20252 Mins Read
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The advanced lithium-ion cells will serve the high value manufacturing sector for automotive, aerospace, marine and off-highway applications

In a significant development for the UK’s battery manufacturing sector, Midlands-based Volklec has announced an exclusive license agreement with Asian battery supplier Far East Battery (FEB). The deal represents a major milestone in Volklec’s industrialization and scale-up strategy.

Following an extensive global selection process, Volklec will manufacture advanced lithium-ion batteries in the UK through this technology and knowledge transfer agreement with FEB, a company that has provided energy storage solutions and EV power globally since 2009.

Production will commence later this year at the UK Battery Industrialisation Centre (UKBIC) in Coventry, with specialists from FEB’s China operations supporting the establishment of a high-yield manufacturing line.

Volklec will produce two specifications of 21700 cylindrical battery cells. Initially, the company will manufacture an energy cell using NMC chemistry designed for e-mobility and energy storage applications. This will be followed by an innovative power cell primarily targeting the High Value Manufacturing sector, including specialized automotive, aerospace, marine, and off-highway applications.

The company will utilize UKBIC’s existing 100MWh line for energy cell production, with plans to install an additional 1GWh line by the end of 2026 for power cell manufacturing. Volklec’s long-term roadmap includes establishing a dedicated 10GWh gigafactory, representing over £1 billion in investment and creating more than 1,000 skilled jobs by 2030.

“There is an urgent need for new independent manufacturers to secure the battery supply chain in the UK,” said Executive Director Phil Popham. “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.”

Volklec aims to bridge the gap between established supply lines for large OEMs and lower-volume niche players seeking reliable battery supply, positioning itself as a key player in the UK’s electric revolution.

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