Coventry Gigafactory close to securing major investment from Asian battery giants

The Chinese firm is contemplating an initial investment of £1.2bn into the project.

The project, situated in Coventry, is the sole site in the UK with planning permission for a new large-scale battery production facility.

Developers are planning a factory capable of producing up to 60GWh annually, an amount sufficient to power approximately 600,000 electric vehicles (EVs) – in alignment with the UK government’s plan to phase out new petrol and diesel vehicle sales by 2035.

Coventry City Council’s cabinet member for jobs, regeneration and climate Cllr Jim O’Boyle said: “I’m pleased to report that we are now in advanced discussions with leading Asian battery manufacturers who want to develop a presence in the UK.

“We hope, with the support of the UK Government, that we will secure an investor and further strengthen our region’s leadership credentials in the shift towards electrification.”

Strategically located in the manufacturing hub of the West Midlands, the gigafactory will benefit from access to a skilled workforce(we can’t really claim this as there’s not a solely UK-based supply chain)and an efficient transportation infrastructure that can accommodate the facility’s logistical and workforce requirements.

In acknowledgment of the strategic significance of this project, an incentive package is being offered to the eventual occupier. This includes favourable conditions regarding local taxation and access to clean and sustainable power.

The project received outline planning permission for development last year, with operations scheduled to commence in 2025. The proposal encompasses the establishment of a gigafactory across a 5.3 million square feet site at the Coventry Airport’s estate, along with an integrated battery recycling facility.

The gigafactory’s plans also include a rooftop solar array and an integrated energy storage facility. To ensure sustainability, any surplus electricity demand is anticipated to be met through 100% renewable energy sources, procured via clean energy tariffs and Power Purchase Agreements (PPAs).

Key beneficiaries of this initiative will likely include Jaguar Land Rover (JLR), Aston Martin Lagonda, BMW, and LEVC, the UK’s sole electric taxi manufacturer.

Labour plans to fast-track gigafactories

In related news, at the recent Labour Party Conference, Shadow Chancellor Rachel Reeves introduced a vision for more efficient utilisation of taxpayers’ funds in comparison to current government practices.

Among the measures outlined was the acceleration of the delivery of Nationally Significant Infrastructure Projects (NSIPs), encompassing energy generation facilities, along with enhanced community benefits for residents near new clean energy projects, potentially inclusive of reduced utility costs.

Additionally, the Labour Party revealed intentions to expedite the planning process for projects deemed critical to the nation’s economic growth, such as battery gigafactories for EVs, building projects, or utility-scale endeavours.