Battery producer AMTE Power has identified Dundee as the preferred site for its first ‘MegaFactory’.
This should have the capacity to produce more than 25,000 batteries per day, with revenue generation of over £200m per annum at full production.
The total required investment is estimated to be between £160m and 190m.
As a first step, AMTE has received an indicative offer letter from Scottish Enterprise regarding a potential package of funding and business support, which is also expected to facilitate continuing discussions with other UK state-owned enterprises, including the Automotive Transformation Fund.
The MegaFactory is expected to be funded by a combination of grant funding, as well as traditional and government-assisted debt and equity.
The 0.5GWh factory is Dundee has signed a binding Letter of Intent with Michelin Scotland Innovation Parc for the reservation of the site, ahead of a formal lease agreement to be signed in the fourth quarter. Located at the old Michelin factory, the project is expected to help revitalise this brownfield industrial facility, boosting the local economy.
The factory should create around 215 on-site jobs and 800 jobs in the wider supply chain during development and operations.
The plant is expected to be operational and in production by the third quarter of 2025, based on current planned timings.
AMTE’s Thurso site remains a core manufacturing facility, focused on production of cells and developing cell technologies.
A statement explained that focusing on high value cell manufacture should enable AMTE to generate good returns at a smaller scale, with associated lower capital investment – and much quicker build and commissioning timeframes – meaning the MegaFactory is considered as a stepping stone towards building ‘GigaFactories’ in the future.
“The model is repeatable and is expected to enable AMTE to be flexible in meeting market demand for its differentiated cells: Ultra-High Power that has been developed with the automotive industry for high performance vehicles and Ultra-Safe for the energy storage sector being the cells attracting most advanced market interest,” the stock exchange update read.