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[ferro-alloys.com]Battery manufacturer Britishvolt is eying two possible sites for its first UK 30+ GWh gigafactory, with South Wales in pole position, the company said June 12.

Europe is playing catch up with China in the race to create a EV battery supply chain. Localized supply chains have been brought to the fore in the wake of the coronavirus pandemic, and its resulting disruptions.

The battery industry is forecast to be worth GBP5 billion [$6.3 billion] domestically by 2025, and the demand for lithium ion cells across a number of industries, including vehicle electrification, is already increasing dramatically.

There are handful of lithium development companies currently trying to bring local supply to the European market in order to secure supply chains and lower carbon footprints as the world gears up for net zero ambitions.

"Not only is Britishvolt filling this gap in the market, but is also moving to leverage the UK's world-leading lithium ion battery research development and academic community to ensure the country retains a commercial and technical lead. The initial wave of GBP1.2 billion of investment into the site will eventually lead to around 3,500 jobs," Britishvolt said in a statement.

The manufacturer also plans to build a solar park alongside the factory, to support sustainable production of batteries and meet low carbon objectives, the statement added.

Lars Carlstrom, CEO at Britishvolt said: "After six months of careful analysis, Bro Tathan [South Wales] is the preferred choice due to [a] number of different factors. The Welsh Government has welcomed us with open arms and impeccable due diligence, and the region meets crucial criteria including import/export accessibility, availability of labour and skilled staff, along with convenient geographical proximity to customers and local industrial companies."

Carlstrom added that, "by the third quarter of 2023, we plan for the first stage of our plant to be fully functional, and envision that between 40% and 60% of the initial GBP1.2 billion of investment will be injected directly into the chosen community, representing a real catalyst for growth in the local economy and the UK."

There had been fears that the UK would lose out on battery investment after Brexit. However, as per local media reports last week Elon Musk, Tesla boss, flew in to evaluate sites in the UK.

"Things are heating up in the UK," said one market source. "There's no denying that electrification is the trend, and the UK will be a big market, we need local supply chains to manage net zero ambitions. Hopefully the coronavirus pandemic leads us to a greener, more sustainable future," he added.

（S&P Global Platts））

• [Editor:王可]