Glencore, a mining group, is investing in the battery start-up Britishvolt and its development of a gigafactory to boost the UK’s car industry transformation to electrical vehicles.
Gatekeepers News reports that Glencore, in the alliance deal, will also supply cobalt, one of the main raw materials used in electric batteries.
The FTSE 100 company will provide Britishvolt with 30 percent of the metal’s supply from 2024 to 2030.
Britishvolt’s £2.6bn electric car battery plant is currently under construction in Northumberland in the northeast of England. The planning permit was approved in early July.
It was gathered that the factory will first employ a total of 1,000 people and will increase it by threefold when it commences operation at full capacity.
The 235-acre operation will boost the creation of electric cars at scale domestically by providing infrastructure and battery supplies. It will help to meet the government’s carbon reduction targets and transition to electric cars with the ban on the sale of petrol and diesel vehicles from 2030.
The gigafactory is expected to be operational by 2023 and produce 300,000 batteries for EVs a year by 2027.
“From Britishvolt’s perspective this is a major milestone, securing responsibly produced raw materials to help de-risk the project,” Orral Nadjari, Britishvolt’s chief executive and founder told the Financial Times.
“If you look at global cobalt production two players stand out Glencore and the Chinese.”
Gatekeepers News reports that Glencore’s strategic support is the first high profile endorsement for Britishvolt’s ambitious gigafactory venture.