UK startup Britishvolt will research battery power and storage options for shipping as a result of investment by Monaco-based Scorpio Group.
Scorpio’s infusion of funds will support joint investigations into the development of battery technology for marine use. The move underscores its strategy of exploring decarbonisation pathways.
Britishvolt, which plans to open a £3.8bn ($4.8bn) gigafactory in north-east England within the next two years, was established with a focus on the unfolding market for systems in electric vehicles and the particular opportunities afforded by the UK’s substantial automotive industry.
To that end, Britishvolt announced working partnerships earlier this year with car makers Aston Martin and Lotus, for the development of battery-powered electric vehicles.
In January, the UK Government signalled its backing of the startup through a £100m ($125m) allocation from the Automotive Transformation Fund. This has led to a financial association with Tritax and abrdn(formerly Standard Life Aberdeen) that will deliver £1.7bn ($2.2bn) in private funding. Mining group Glencore, earlier selected as the future factory’s supplier of cobalt, has made a £40m ($50m) investment in Britishvolt.
A rendering of Britishvolt’s prospective battery factory, located near the bulk terminal at Blyth in Northumberland.
Scorpio sees its involvement as accessing the UK’s cutting-edge scientific community, with the aim of accelerating work on ‘green’ propulsion and power storage solutions for maritime applications. The group’s interests include Scorpio Tankers and offshore windfarm vessel specialist Eneti, born out of the former Scorpio Bulkers.
Financial details of the Scorpio transaction have not been disclosed. The move is viewed by Britishvolt as an endorsement of its vision for 2050, whereby not only electric vehicles adopt the company’s low-carbon, sustainable battery cell capacity, but also shipping and aircraft.
Production at the gigaplant complex in Cambois, Northumberland, on the former Blyth Power Station’s coal stocking yard, is scheduled to get under way during the latter stages of 2023 or early 2024. In terms of the automotive market, the factory will have the capability to build enough cells each year for at least 300,000 electric vehicle battery packs.
Founded by UAE businessman Orral Nadjari, Britishvolt has signed a memorandum of understanding with Indonesian company VKTR to establish a nickel sulphate facility in Indonesia and secure a supply to support the UK firm’s battery production.
Moreover, the relationship with Glencore has been strengthened this year through the formation of a battery recycling joint venture. All Britishvolt’s battery manufacturing scrap from the Northumberland gigafactory will be treated at a new recycling plant located at Glencore-owned Britannia Refined Metals’ operation on the lower Thames at Northfleet.
For Scorpio, the initiative on energy storage system technology is the latest in a series of measures taken by the group to investigate viable avenues for reducing shipping’s carbon footprint. The previous example of this strategy is a provisional agreement with a US-based startup to develop and validate an onboard carbon capture system.
