Dundee battery cell 'mega factory' moves step closer with signing of milestone contract

Scottish battery cell pioneer AMTE Power has agreed a “milestone” production contract as it progresses towards its Dundee “mega factory”.

The firm has signed a framework contract with the UK Battery Industrialisation Centre (UKBIC) to produce up to 60,000 ultra high power cells per year for the high performance automotive and fuel cell electric vehicle markets. AMTE said its automotive cell demonstrated a consistent six-minute full charge time in extensive trials.

The contract with UKBIC in Coventry starts in January for anticipated sales to customers in sufficient scale to allow the firm to progress to in-vehicle trials. The agreement is seen as a key milestone to upscale production ahead of mass commercialisation plans as the company moves towards setting up the Dundee plant.

In July, AMTE said it had selected the Tayside city as the location for a plant to serve the UK’s renewable energy storage and electric vehicle markets. It will have the capacity to produce more than eight million batteries per year, generating anticipated annual revenues in excess of £200 million.

AMTE Power, which is based in the Caithness town of Thurso, had been eyeing a number of locations around the UK for the new factory.

Chief executive Kevin Brundish said: “Having already secured significant early interest in our ultra high power cell from major automotive partners, this contract will enable us to bring our products to market sooner while we progress our own mega factory.

“This new phase in our journey builds on the partnership that we’ve established with UKBIC through cell development.

“It is testament to the investment that the UK government has made in this market-leading battery manufacturing and scale-up facility that we are now able to put that development work into practice with the first production contract at UKBIC to get cells into customers’ hands as we power the energy transition.”

AMTE Power was founded in 2013 and is a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets. Picture: Rob Lacey

Jeff Pratt, managing director, UKBIC, added: “Advanced battery cells being manufactured at volume in the UK are a vital component of ensuring the UK prospers from the energy transition towards net zero.

“This latest agreement - our biggest to date - is further demonstration of the unique value of UKBIC.”