Battery manufacturer Amte Power has revealed plans to scale up its factory in Thurso this year as the supplier looks to increase production in light of increasing demand.
The Caithness facility makes “Ultra Prime” cells which are used in more challenging industrial environments including sectors such as construction, oil, gas and mining.
It also manufactures “Ultra Safe” cells for use at wind and solar power generation sites as well as for domestic residential storage.
There is much speculation currently surrounding the future of UK battery manufacturing following the recent collapse into administration of Britishvolt in Northumberland with most of its 300 staff being made redundant.
However, in a sign of faith in the nascent battery sector, Australia-based Recharge Industries has been successful in its bid for ownership of Britishvolt and now claims it will be able to create the UK’s first “gigafactory”.
Importance of UK battery production
Recharge boldly claims it will provide “thousands of green, skilled and local jobs” and will be eyeing the increasing trend of a switch from fossil-fuelled to electric vehicles for example – as proving the need for domestic production rather than importing batteries from thousands of miles away in Asia.
WAE Technologies is also due to open a new battery plant in Oxfordshire in April, creating around 300 jobs.
Following the collapse of Britishvolt the business committee in the UK Parliament also set up an inquiry into UK electric vehicle battery production.
The Business, Energy and Industrial Strategy Committee said the inquiry would examine how electric vehicle battery making works and its viability.
‘Boost for Thurso’
Amte is remaining coy about the scope of the Thurso expansion or indeed whether the move will lead to new job creation, but the decision will come as a vote of confidence in the Caithness plant.
Amte Power CEO Alan Hollis said: “We have announced plans to invest in the scale up our manufacturing facility in Thurso, with work set to commence in 2023.
“The facility is an important base for us for cell research and development and for production of our Ultra Safe cell for use in energy storage and Ultra Prime cell for challenging industrial environments.
“We’re boosting the production capabilities of the facility to enable us to increase production of these cells and meet rising demand from markets.
“We’re pleased to have recently delivered the initial batch of Ultra Prime cells manufactured in Thurso, to our customer for testing.”
Amte is keeping its cards close to its chest as to the identity of that customer or the extent of its Thurso investment, but speculation has hinted it could be in the order of £2 million – £3 million and that revenue from the expansion could be triggered as early as next year.
News of the Thurso ramp up comes after the manufacturer posted half-year results this week showing turnover down from £0.82 million to £0.55 million and a loss before tax of £3.72 million (H1 2022: loss £2.65 million).
Ultra-Prime cell used for high-temperature performance
The Caithness company has been particularly active of late with delivery of its Ultra Prime cells to the unnamed customer for testing and as part of the existing supply and development agreement with it for “characterisation and certification purposes” with more cells to be shipped as part of the development programme.
Amte’s Ultra Prime product is a non-rechargeable cell designed for use in extremely difficult environments around the world, with very high energy density and high-temperature performance.
This cell also has a low self-discharge, making it suited for applications where temperature high pressure and accessibility are key considerations.
Mr Hollis added: “Amte Power is one of the only manufacturers of battery cells in the UK today and, although this delivery will have minimal impact on this year’s financial performance, it is a crucial first step to have delivered Ultra Prime cells into the hands of our customer.
“We will continue to scale up production of the Ultra Prime cells at Thurso as we meet the customer demand for this product.”
Last October Amte was awarded a manufacturing contract for its Ultra High-Power cells.
The UK Battery Industrialisation Centre (UKBIC), based in Coventry, is expected to produce 60,000 of Amte’s batteries annually for at least two years.
Megafactory planned for Dundee
It means Amte will be able to deliver its first Ultra High-Power cells in a sufficient scale for automotive industry customers to progress to in-vehicle trials as they move away from traditional fuels.
Using UKBIC to manufacture cells will also allow Amte to grow production in advance of mass commercialisation plans based on its first megafactory, in Dundee.
The plant will be at a former Michelin site and is due to create 215 direct and 800 indirect jobs.
The facility is expected to start cell production from 2026.
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