Lithium battery makers plan new round of plant projects

Plans are progressing for new lithium-ion battery plants that will supply electric vehicle (EV) producers outside the Asia-Pacific region as the production of new models ramps up.

UK battery cell developers AMTE Power and Britishvolt have signed an initial agreement to collaborate on building a lithium-ion battery cell Gigafactory to supply the EV and energy storage markets. Britishvolt plans to build a factory with the capacity to produce up to 35 GWh/yr of batteries, targeting a launch in 2023. AMTE Power has a cell manufacturing plant in Scotland and is planning to build a 1-5 GWh/yr production facility, scheduled to come on line in 2023.

The companies will work to develop the battery manufacturing supply chain in the UK to supply local EV manufacturers and reduce uncertainty in supply.

There is a push to build battery manufacturing facilities in close proximity to automotive producers in central Europe, providing an alternative to competing with companies globally to secure supply from battery makers in Asia-Pacific.

The pace of battery production has sometimes lagged the expansion in EV production, with battery manufacturers based in South Korea, Japan and China supplying carmakers around the world. Some EV producers have faced delays on their assembly lines owing to battery supply shortages in the last few years, highlighting the need for increased capacity.

South Korean battery producers LG Chem and Samsung SDI have built plants in Poland and Hungary, respectively, that they are now expanding to substantially increase capacity in the coming years, while Sweden's Northvolt has projects in Sweden and Germany. US producer Tesla is planning a Gigafactory in Germany, as are Germany's Daimler and China's CATL. And Slovakian developer InoBat Auto plans to build a 10GWh battery plant in Slovakia, the world's largest car producer per capita.

In the US, General Motors and LG Chem have formed a joint venture for cell manufacturing, Ultium Cells, which has started ground preparation work for a planned new 30GWh battery plant in the state of Ohio. GM is developing three EV models that will launch by 2022 using Ultium cells and ultimately plans for more than 20 vehicles to use the cells.

South Korea's SK Innovation will start construction in July on its second EV battery manufacturing plant in the US state of Georgia. Both facilities are scheduled for completion in 2023, with a total capacity to produce batteries for 310,000 EVs annually.

Japanese electronics and battery manufacturer Panasonic said in its fiscal 2020 financial results this week that demand for EV batteries is strong, particularly from Tesla, and the two firms have resumed discussions to expand the production capacity at the 35 GWh/yr Gigafactory in Nevada.

By Nicole Willing