Mining giant Glencore has acquired a stake in the company bringing the 海角视频’s first electric battery gigaplant to Northumberland, paving the way for long-term supplies of a key material.
Britishvolt plans to build its factory at Cambois, Blyth, which could create up to 8,000 jobs by the time it is fully operational, subject to it raising £1 billion from investors.
The company – which last month held a ground-breaking ceremony on the site of the former power station set for major regeneration – has now announced it has entered into a long-term strategic partnership for the supply of cobalt with the world’s largest industrial producer Glencore.
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As part of the deal, Glencore has also made an undisclosed investment in Britishvolt.
The news represents a major milestone for Britishvolt’s quest to build the gigafactory, which would see it produce enough lithium-ion batteries to power around 300,000 electric vehicles a year.
Orral Nadjari, Britishvolt chief executive and founder, said that securing one of the key battery ingredients from the Glencore cobalt brands means Britishvolt is significantly derisking its operation, by obtaining long-term security of supply across its business.
He said: “This is a huge step in the right direction for Britishvolt as we look to accelerate the transition to a low carbon society. By partnering with Glencore, we are locking in supply and derisking the project.
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“At the very heart of our business are our core ESG (environmental, social and governance) principles and commitments. Cobalt is a key ingredient in electric vehicle batteries and knowing that we are being supplied with responsibly produced cobalt is a signal to the market that we are living by our values.
“This strategic partnership aligns perfectly with our ESG principles, including ‘applying best practice wherever possible’ as well as ‘assessing labour, human rights and ethical procurement performance of our suppliers’.
"We believe that to be a true pioneer in the battery cell manufacturing industry, Britishvolt must lead by example and ensure that its supply chains are as ethical, low carbon and sustainable as is possible.”
David Brocas, head cobalt trader at Glencore, said: “We are delighted to be partnering with Britishvolt, a pioneer in 海角视频 electric vehicle battery technology and production. The 海角视频 has a unique legacy of automotive innovation and Britishvolt’s ambition to power the next generation of mobility will add to this rich history.
“Our commitment to support our partners in meeting their requirements for essential battery ingredients is key to underpinning long-term supply agreements. As the mobility and energy transition accelerates, so does future demand for battery metals such as cobalt, copper and nickel. Glencore is already a leading producer and supplier of these metals, helping to underpin our ambition of achieving net zero total emissions by 2050.”
The Northumberland development is expected to bring around 3,000 direct highly-skilled jobs and another 5,000-plus in the associated supply chains.
The factory project will be built in three phases, each of 10GWh to a total capacity of 30GWh by end-2027 onwards, which it said allows the business to keep on top of any technological advancements.
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News of the undisclosed stake by Glencore comes a week after a leading figure in the 海角视频’s automotive industry said the project could usher in a new generation of economic development in the North East.
Julian Hetherington, automotive transformation director at the 海角视频’s Advanced Propulsion Centre, said: “These are absolutely pivotal investments – they can be transformative for technologies and regions. They [gigaplants] process such high values and bring significant requirements for skills and employment.
“And because of the high capital investment involved, they can in turn lead to further investment in extended supply chains. They can be a honey pot in attracting more investment and economic activity.”
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