Saturday, July 13, 2024

Chinese EV battery maker in talks to invest £1bn in new Coventry gigafactory

Chinese electric vehicle battery manufacturer EVE Energy is reportedly in discussions to invest over £1 billion in constructing a massive new gigafactory on the outskirts of Coventry.

The proposed factory, spanning 5.7 million square feet, would be a key component of the planned UK Centre for Electrification in the West Midlands region.

The investment could lead to the creation of up to 6,000 jobs and would involve collaboration with local councils and Coventry airport, where the facility is set to be located. EVE Energy is considering an initial investment of £1.2 billion for the project, with potential expansion in subsequent phases.

This development follows Tata Group’s commitment last year to invest £4 billion in building an electric car battery gigafactory in Somerset, UK, which is expected to generate 4,000 new jobs. The West Midlands, home to various car manufacturing facilities and the UK’s largest battery research center, is positioning itself as a hub for EV battery production and innovation.

The Coventry gigafactory project could attract additional private funding totaling up to £2 billion, contingent on securing substantial subsidies from the UK government. Discussions with potential investors, including leading Asian battery manufacturers, have been ongoing since October 2023.

While the project’s spokesperson confirmed discussions with global battery manufacturers, specific details remain confidential. The government reiterated its commitment to supporting automotive manufacturing in the UK’s transition to electric vehicles, emphasizing responsible use of taxpayer money.

EVE Energy has not yet commented on the reported investment talks.