UK in talks with six companies for producing EV batteries

EV batteries

Britain’s vehicle plants will require a shift to producing electric models amid the government’s plan to prohibit the sale of new petrol and diesel cars by 2030

Britain is in talks with six companies for building gigafactories to produce electric vehicle batteries, the Financial Times reported on Wednesday, citing people briefed on the discussions.

According to the report, Ford Motor Co, Nissan Motor Co Ltd, LG Corp, Samsung and start-ups Britishvolt and InoBat Auto are in talks with the British government or local authorities over locations for setting up the potential factories and financial support.

Britain’s vehicle plants will require a shift to producing electric models amid the government’s plan to prohibit the sale of new petrol and diesel cars by 2030 and hybrids by 2035.

A UK business department spokesperson told the FT the government was dedicated to securing gigafactories, and continue to work closely with investors and vehicle manufacturers to progress plans to mass-produce batteries in the UK.

So far, there are 38 planned gigafactories across Europe, according to green lobby group Transport & Environment, with only Britishvolt’s project being disclosed in the UK, the newspaper said.

The Financial Times reported that Ford has indicated it was exploring making batteries in the UK that would then be shipped to Turkey for use in a planned electric version of its Transit van. The carmaker is in early-stage talks with the British government.

Ford may make parts of battery modules in Britain before shipping them to Turkey for final work and installation, according to the report.

Nissan’s talks with the government about building a battery plant at its Sunderland manufacturing complex hinge on energy costs, the Financial Times said.

LG and Samsung are both in early-stage talks with the UK government about investments, and the companies are only likely to proceed if they have deals with major carmakers, the report added.

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