A new tech and knowledge transfer partnership has been signed with a Chinese battery firm which could represent a £1 billion investment into the West Midlands' manufacturing sector.
Coventry-based battery manufacturer Volklec has teamed up with Far East Battery to sign an exclusive license agreement.
Far East Battery was launched in 2009 and designs and makes batteries.
Under the new partnership, Volklec will manufacture advanced lithium-ion batteries at the º£½ÇÊÓƵ Battery Industrialisation Centre in Coventry, supported by a team of specialists from Far East Battery.
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Two specifications of battery cells will be made under the new deal. First to production will be a compact cylindrical battery to serve the e-mobility and energy storage sectors.
This will be followed by the launch of a power cell aimed primarily at specialist applications for clients working in sectors such as automotive, aerospace and marine.
Volklec will use an existing production line at the º£½ÇÊÓƵ Battery Industrialisation Centre to produce the cylindrical battery but a new line will be installed by the end of 2026 to manufacture the power cell.
Volklec said it also planned to create a dedicated 10GWh gigafactory representing an investment of more than £1 billion and creating more than 1,000 highly skilled jobs by the end of the decade.
A location for this gigafactory has not been disclosed at this stage.
Land at Coventry Airport has long been earmarked for a new gigafactory with consent for the scheme first passed three years ago by councils in Coventry and Warwick.
Although work continues to secure funding partners, no spades have been put in the ground at the airport to commence construction.
The executive team at Volklec is led by director Phil Popham who was previously marketing director at Jaguar Land and chief executive of Lotus.
He said: "There is an urgent need for new independent manufacturers to secure the battery supply chain in the º£½ÇÊÓƵ.
"There is no greater transformation today than the electric revolution in transport and mobility and the British start-up scene is thriving, from motorsport to heavy duty off-highway and most things in between.
"But there is a substantial gap in the supply chain. The º£½ÇÊÓƵ is particularly strong in the specialist and high-performance sectors which need surety of supply with quality and reliability. Our mission is to help these innovators thrive."
