UK startup Volklec, located in Coventry, has entered into a licensing agreement with Far East Battery (FEB), a Chinese manufacturer predominantly focused on electric bike batteries, for technology and manufacturing processes. This move is aimed at mitigating the risks associated with large-scale electric vehicle (EV) battery production, an obstacle that has previously hindered British attempts in this field.

Phil Popham, former CEO of Lotus Cars, has been appointed executive director of Volklec to oversee the venture. He foresaw a strategy that takes a low-risk approach, emphasizing a phased development to sidestep the pitfalls that led to the demise of previous British automotive startups, such as Arrival and Britishvolt.

Volklec plans to commence production this year at the UK Battery Industrialisation Centre (UKBIC), a research center backed by the UK government. Subsequently, they will seek a location to establish a factory capable of producing batteries with a cumulative capacity of 10 gigawatt-hours annually. This represents a significant boost to the UK, which currently only hosts two so-called “gigafactories,” owned by AESC, which supplies Nissan’s Sunderland plant, and Agratas, a subsidiary of the Tata conglomerate focused on serving Jaguar Land Rover.

Popham underscored the demand for an independent British battery manufacturer to support businesses without sufficient scale for their gigafactories. The partnership with FEB may raise concerns regarding geopolitical tensions; however, Chancellor Rachel Reeves has advocated for Chinese investment to help stimulate UK growth.

The Khatri brothers, Imran and Sameer, who were previously investors in Britishvolt, co-own Volklec. By taking a phased approach, Popham aims to shield the company from substantial financial risks, distinguishing them from the troubled histories of Arrival and Britishvolt, both of which faced significant financial challenges.

Source: https://www.theguardian.com/business/2025/feb/26/uk-battery-firm-volklec-coventry