British startup Volklec has entered into a licensing agreement with China’s Far East Battery (FEB) to produce batteries for energy storage and electric vehicles, the company said on Wednesday.
The partnership will also see FEB providing technical support and supply chain access to help Volklec scale up production at the UK Battery Industrialisation Centre (UKBIC) in Coventry.
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FEB, a unit of Far East Smarter Energy Co (600869.SS), will supply engineers and other resources to assist Volklec in manufacturing “energy cell” batteries for e-scooters, e-bikes, and EV chargers starting in late 2025. A separate “power cell” for EVs is expected to enter production in the second half of 2026.
European battery manufacturers have faced significant challenges in developing viable battery chemistries while securing funding and scaling production in an industry dominated by China. Following setbacks such as Britishvolt’s collapse and Sweden’s Northvolt undergoing restructuring, industry experts anticipate that more European firms will seek Chinese investment and expertise.
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Volklec executive director Phil Popham said the company aims to move quickly by leveraging existing technology. “Volklec’s approach is all about getting to market quickly using proven technology to give confidence to customers and investors,” he said. “We know where we’re going to buy it, where we’ll produce it and what we’ll produce.”
UK investment firm Frontive Group has committed £20 million ($25.3 million) to support energy cell production, while Volklec plans to raise an additional £80 million to establish a 1 gigawatt-hour (GWh) production line at UKBIC for power cell manufacturing. The company is in discussions with automakers regarding the use of its cells but did not disclose specific names.
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