Gigafactory set to secure £1bn investment from Chinese EV battery maker

Discussions have reportedly progressed between the West Midlands Gigafactory initiative and a leading Chinese electric vehicle (EV) battery manufacturer, aiming to secure a £1bn investment for a new gigafactory near Coventry.

EVE Energy, the Chinese firm employing around 28,000 people worldwide, is in talks to back the development of a gigafactory covering 5.7 million square feet. This facility is expected to be a cornerstone of the UK Centre for Electrification, a significant investment hub in the West Midlands.

The gigafactory project, undertaken with the support of local councils and Coventry Airport, could create approximately 6,000 jobs.

Future expansions could make the Coventry site larger than Nissan’s £1bn EV plant in Sunderland, which includes a 9 gigawatt-hour (GWh) battery production facility – a pioneering effort in the UK.

This update follows last year’s announcement that the West Midlands Gigafactory was in late-stage negotiations with prominent Asian battery producers about potential investments in Coventry.

A project spokesperson stated, “Based in Coventry, West Midlands Gigafactory is the only available site in the UK that sits within an investment zone and has planning permission for a large-scale battery manufacturing facility. We are in discussions with a number of global battery manufacturers, but these remain confidential.”

Manufacturers such as Jaguar Land Rover (JLR), Aston Martin Lagonda, BMW, and LEVC, the UK’s exclusive electric taxi producer, are poised to benefit significantly from this facility.

The Coventry gigafactory initiative is expected to draw up to £2bn in private investments, contingent on the provision of substantial UK government subsidies, potentially amounting to hundreds of millions of pounds.

The automotive industry has expressed enthusiasm over EVE Energy’s potential investment in Coventry, though there are calls for the UK Government to focus more on supporting the domestic battery startup scene, as outlined by edie in their summary of industry reactions.