According to Reuters, Volklec, a UK-based battery manufacturing startup, has signed an exclusive licensing agreement with China’s Far East Battery (FEB) to produce lithium-ion batteries for electric vehicles (EVs), energy storage systems, and e-mobility applications. This partnership represents a landmark technology transfer, enabling British production of advanced cylindrical 21700 battery cells using proven NMC chemistry.
Scaling Up Battery Production in Coventry
Under this agreement, FEB will provide Volklec with technical expertise, engineering support, and access to its established supply chain, ensuring a streamlined and cost-efficient production process. Manufacturing will begin in late 2025 at the UK Battery Industrialisation Centre (UKBIC) in Coventry, initially focusing on:
- Energy Cells: Compact cylindrical cells optimized for e-scooters, e-bikes, EV chargers, and stationary energy storage.
- Power Cells: High-performance cells designed for automotive, aerospace, marine, and off-highway applications, set to launch in 2026.
Investment and Future Expansion Plans
Volklec has secured an initial $25.4 million investment from UK firm Frontive Group to fund the energy cell production phase. The company is actively raising $101.6 million for a 1GWh production line expansion at UKBIC, with long-term plans to establish a 10GWh gigafactory, an investment exceeding $1.27 billion, and expected to create 1,000+ highly skilled jobs by 2030.
“There is an urgent need for new independent manufacturers to secure the battery supply chain in the UK. While the British start-up scene is thriving, from motorsport to heavy duty off-highway and most things in between, there is a substantial gap in the supply chain. The UK 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,” – Phil Popham, Executive Director, Volklec
Addressing the UK’s Battery Supply Chain Challenges
The UK’s battery industry has struggled to attract large-scale investment, with only two operational gigafactories:
- AESC (Chinese-owned), supplying Nissan’s Sunderland factory
- Agratas (Tata-owned), building a Somerset facility for JLR Corporate Website (JLR)
While these factories are expected to produce 38GWh and 40GWh capacities respectively, British startups such as BritishVolt have faced financial setbacks. Volklec is learning from past failures, adopting a phased expansion approach that minimizes financial and operational risks.
Outlook: Strengthening the UK’s Position in EV Battery Manufacturing
Volklec’s strategic licensing agreement with FEB provides the technical and financial framework necessary to establish a competitive battery manufacturing sector in the UK. By combining Chinese technological expertise with British manufacturing capability, the company aims to reduce reliance on imported batteries, support automotive and energy storage industries, and enhance the sustainability of the UK’s EV market.
With ongoing investment efforts, production scale-ups, and industry collaborations, Volklec is set to play a pivotal role in the UK’s transition to a low-carbon economy, strengthening domestic battery production and securing the future of green mobility.
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