Volklec Plans £1bn UK Gigafactory with Chinese Support

February 26, 2025

Volklec, a Coventry-based battery start-up, aims to build a £1bn gigafactory with backing from former Britishvolt investors and a partnership with Chinese battery supplier Far East Battery. Supported by investment firm Frontive Group, Volklec is learning from Britishvolt’s missteps by securing customers and in-house expertise before committing to large-scale manufacturing.

The company will initially produce cylindrical nickel-rich battery cells for e-bikes and energy storage at the UK Battery Industrialisation Centre, a government-funded pilot facility. By 2025, it plans to expand into automotive, aerospace, and marine power cells, targeting smaller manufacturers that lack the resources for their own battery production.

Focus on Grid-Scale Storage

Volklec aims to enhance the UK’s energy security by producing lithium-ion 21700 battery cells for grid-scale storage. These batteries will help stabilize the National Grid by balancing supply and demand fluctuations, reducing reliance on gas-powered plants, and enabling greater use of renewable energy.

Rapid Deployment Through Established Technology

With a long-term agreement in place, Far East Battery provides Volklec with technical expertise and supply chain support. Production will begin at UKBIC, starting with a 100MWh line, scaling to 1GWh by 2026, and culminating in a 10GWh gigafactory by the decade’s end.

Supporting the UK’s Energy Transition

Volklec’s efforts align with the UK’s push for sustainable power solutions and net-zero emissions. By offering locally produced batteries, the company seeks to fill supply chain gaps and bolster the country’s battery industry, which has been dominated by foreign entities. If successful, Volklec could play a pivotal role in the UK’s shift to renewable energy storage.

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