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Highland firm leading charge in low carbon cars development

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A Highland firm is leading a consortium that has just secured funding for a £5.4million project to kick start UK production of batteries for low carbon vehicles.

AGM Batteries, based in Thurso, said yesterday that the coming together of the consortium had effectively created a UK supply chain for automotive batteries in one fell swoop.

At present, most of the technologies found in batteries used by the UK automotive industry come from overseas.

But the consortium believes battery packs for hybrid and electric cars can be developed in the UK at a competitive price and to a high standard.

It aims to bring production back to these shores, creating more than 50 new jobs in the process.

AGM business development director Ian Whiting said: “The UK has a strong reputation for automotive development and manufacturing and is also very strong on battery technology research.

“This project pulls much of that together, creating a team of respected industry partners, each bringing a specialism to the table. What we have is the basis of a complete UK supply chain for automotive batteries from powder to power.”

AGM, whose role in the project is to make battery cells, has been joined in the consortium by Dukosi, Johnson Matthey Battery Systems, Warwick Manufacturing Group and Cosworth.

The five companies have stumped up a combined £2.7million for the UK Automotive Battery Supply Chain project and the Advanced Propulsion Centre (APC) has agreed to provide roughly the same amount.

APC is a £1billion partnership between industry and the UK Government. It was set up in 2013 with a remit for enhancing the UK’s industrial capability through the development of low carbon technologies over a 10 year period.

APC director for technology and projects Jon Beasley said the latest funding award proved the government is committed to achieving that goal.

Mr Whiting added: “This funding, in addition to the significant funding being invested by AGM and our partners will allow us to prove that we have the skills and ambition in the UK to produce world leading, innovative battery products.”

Mr Whiting was part of the management team at AMTE Power, the company that took over AGM in 2013.

Current AGM chief executive Kevin Brundish and chief operating officer Steve Farmer were also on the management team.

Their intention was to transform AGM into a business that can scale up the production of pioneering, new technologies.

AGM employs a dozen people at the plant in Thurso, where it specialises in making lithium ion batteries.

Most of AGM’s clients are in defence and oil and gas, though it is dipping its toes into other areas, such as automotive.