Battery manufacturer Amte Power has agreed an unsecured £580,000 loan from Highlands and Islands Enterprise (HIE) to support the group’s operations in Thurso.
The firm recently revealed plans to scale up its factory this year as it looks to increase production in light of increasing demand.
The Caithness facility makes “Ultra Prime” cells which are used in challenging industrial environments including sectors such as construction, oil and 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.
The company remains in discussions with HIE regarding the possibility of the Highlands body providing a further loan.
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.
Faith in UK battery landscape
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”.
WAE Technologies is also due to open a new battery plant in Oxfordshire in April, creating around 300 jobs.
Amte Power chief executive Alan Hollis said: “We are pleased to receive this support from Highlands and Islands Enterprise, which demonstrates our future contribution to the local community.”
Eann Sinclair, Caithness and Sutherland area manager at HIE, added: “Amte is a key employer in Caithness and we are pleased to support the company as it transitions from its research and development work into manufacturing.”
Amte’s Thurso facility has the second largest cell production capacity in the UK and the company also has a product development team based in Oxford.
Amte’s proposed gigafactory in Dundee, Scotland is expected to be capable of producing more than 8 million battery cells per year.
The Alternative Investment Market (Aim) listed manufacturer recently posted half-year results showing turnover down from £820,000 to £550,000 and that it made a loss before tax of £3.72 million (H1 2022: loss £2.65m).
In a note to investors, AMTE’s nominated adviser (nomad) and broker WH Ireland said the terms of the loan were “attractive” and would “underpin” operations in Thurso.
The deal also reflected its “strategy of accessing public funds as part of its funding mix for the purposes of financing its environmentally friendly product”.
The HIE loan is repayable after three years and incurs interest after an initial 12-month interest-free period, at 6.5% per year.
The company was formed in 2013 after it was acquired from AGM Batteries, which produced conventional lithium-ion cells, from AEA Technology, a spin off from the UK Atomic Energy Authority.
The agency, which then operated the nearby Dounreay nuclear power station, has been credited with building the world’s first ever prototype lithium-ion battery.
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