Region needs world-class ‘gigafactory’ to manufacture electric vehicle batteries

The West Midlands needs a world-class ‘gigafactory’ capable of producing the batteries required to power next generation vehicles, the Mayor has said.

Andy Street’s call comes after Jaguar Land Rover revealed plans to build a range of new electric vehicles at its Castle Bromwich factory, starting with the new XJ model, bringing hundreds of millions of pounds of investment and job security for 2,500 people.

As part of the plans there will be an extensive transformation of Castle Bromwich site to become the UK’s first premium electrified vehicle plant and “will be the most significant in the plant’s history”.

The government then announced it was promising JLR £500m to back the car manufacturer’s plans.

“This signalled a new chapter for a site that built the Spitfires that won the Battle of Britain, which has been at the heart of the region’s automotive industry for generations,” Street said.

“Battery manufacture is vital to the success of electric transport, as 40% of a vehicle’s value lies in this crucial component. Batteries also form the heaviest part of the vehicle, meaning their production needs to be near the car’s assembly lines. Not surprisingly, battery development is where real innovation is being driven, and where our universities give us a real advantage.”

Street says that as a result of JLR’s commitment to build vehicles at Castle Bromwich, electric drive units being made in Wolverhampton and battery assembly at Hams Hall in North Warwickshire, a “new automotive cluster is taking shape”.

“One thing is clear: the future of the motor industry lies in electric and autonomous vehicles. The phenomenal popularity of Tesla in the USA, and the rapid adoption of electric in countries such as Norway, show that we are on the cusp of a seismic shift in motoring – and manufacturers are reacting to it. Over the next 18 months, new electric models will appear on the market, at more attractive mass-market prices.”

Street suggests that the region could take inspiration from Tesla’s gigafactory being built in the Nevada desert.

Tesla broke ground on the gigafactory in June 2014. Already, the current structure has a footprint of more than 1.9 million sq ftt, which houses approximately 5.3 million sq ft of operational space across several floors. Still, the facility is about 30% done.

“Government has already played an important role in helping make the West Midlands competitive in this race, investing £108m in a state-of-the-art Battery Industrialisation Centre in Coventry, and creating the Centre for Connected and Autonomous Vehicles,” Street said.

Now Government incentives could attract a global firm to create this “much-needed gigafactory” says Street.

He added: “The biggest challenge lies in the infrastructure investment the new electric era will require – in terms of charging networks where vehicles can ‘refuel’ – and Government needs to step up to play its part. No single car manufacturer will be able to justify investing in such a vast endeavour.”

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