Scottish battery cell pioneer AMTE Power said it had selected the 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.

Bosses said the investment was expected to have “huge economic benefits” for the surrounding area, supporting the Scottish Government’s national strategy for economic transformation and the UK government’s “levelling up” agenda and commitment to net zero.

There are expected to be 215 “highly skilled” on-site jobs and as many as 800 jobs in the wider supply chain during development and operations at the plant.

The firm said the mega factory, which is expected to be operational in the third quarter of 2025, would create a stepping stone to construct “giga-factories” in the future, meeting the huge demand for battery technology.

AMTE was co-founded in 2013 by chief executive Kevin Brundish, together with several others, including former colleagues from defence technology heavyweight QinetiQ. It raised millions of pounds last year as its shares were admitted to the Alternative Investment Market (Aim).

Dundee has undergone massive regeneration in recent years, largely focused on its waterfront area, including the addition of the V&A Museum.

Brundish said: “We are excited to announce Dundee as our preferred location for our first mega factory, a quantum leap for AMTE. The change in our execution strategy will accelerate our journey to mass manufacture of high value added, differentiated cells.

“The mega factory will be a platform from which AMTE can harness our advanced inhouse capabilities to build manufacturing plants to meet the huge demand for battery cells - allowing us to rapidly scale up production and fast-track the path to achieving net zero.

“Battery cells are fundamental to enabling the UK’s energy transition and with this investment, we will play a key role in electrifying the vehicles, homes and industries of the future.”

The factory is planned for the old Michelin tyre factory site, now known as Michelin Scotland Innovation Parc (MSIP), which is undergoing major regeneration.

Councillor John Alexander, leader of Dundee City Council, said: “This is an exciting proposal which has the potential to deliver hundreds of direct and supply chain jobs. All partners are committed to delivering on the vision that we had for MSIP following the closure of the tyre factory.

“AMTE’s proposed mega factory is a great fit with that vision and would build significantly on the successes that have already been achieved in securing tenants for the Parc. We want to be at the forefront of new technologies.

“We want to have a workforce with the right skills for future needs. And, ultimately, we want to create sustainable employment for local people.

“We look forward to working closely with local and national partners to help progress AMTE’s plans and secure this major investment in Dundee.”

Hundreds of jobs in pipeline as Dundee chosen as preferred site for battery 'mega factory'

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