Britishvolt, a start-up, has secured around 1.7 billion pounds in funding for the battery factory it hopes to build in Blyth, UK. The capital is provided by investment firms Tritax and Abrdn.
According to the deal announced today, Abrdn and Tritax, which invests in logistics real estate, are thus raising 1.7 billion pounds for the construction of the British Volt plant, which the company hopes to open in 2023.
The investment in the project in Blyth, in the north east of England, has been backed by a government grant, according to the FT. It is said to go around 100 million pounds from the Automotive Transformation Fund, a piggy bank set up to lure battery developers to the UK.
The Blyth site has access to renewable energy and a deep seaport. The plant, where Britishvolt is estimated to produce enough batteries to power 300,000 electric cars, will create around 3,000 jobs at the site and another 5,000 in the local area.
Last year, mining company Glencore agreed to provide British Volt with both cobalt and finance, in exchange for a stake in the company. This happened in the context of a $ 70 million fundraising round, which valued the company at over $ 1 billion.
Although Britishvolt has not yet made its own internal developments in the field of batteries public, according to FT sources, it has already signed memoranda of understanding with aircraft manufacturer Bombardier, Canadian Commercial Vehicle Group Lion, sports car brand Lotus and electric truck group Tevva. The company is also in talks with Stellantis.
Peter Rolton, Chairman of Britishvolt, said the funding announced today was a” first step in the creation of a commercialized battery ecosystem ” for the United Kingdom.
Last year, automakers Ford, Nissan and Stellantis all promised significant UK investments in electric vehicles. In addition, the government has also negotiated with Rivian, an American manufacturer of electric pickups.