West Midlands gigafactory plans could see billions of pounds invested into the region

Advanced negotiations with a Chinese company are underway with the government for the business to invest billions of pounds into building Britain's biggest gigafactory, according to reports.

EVE Energy, the world’s largest manufacturer of Tesla-like cylindrical car batteries is believed to be planning to construct a 60 gigawatt-hour factory on the outskirts of Coventry.

A report in the Sunday Times states that the company would initially commit to investing at least £1.2 billion into a 20GWh gigafactory. Subsequent phases of the works are expected to expand the site to make it almost twice the size of Nissan’s electric battery factory in Sunderland. 

Reports further state that the West Midlands Gigafactory would be the anchor tenant of a larger project called the UK Centre Of Electrification which would be a joint venture between local councils and the owners of Coventry Airport.

The plant would create 6,000 jobs and thousands more in the supply chain in a region that exports an estimated £14 billion in cars and auto parts — almost double that of any other part of the UK.

West Midlands Mayor Andy Street is believed to have paved a pivotal role in brokering conversations between the joint venture EVE and the chancellor. Commenting on the reports this afternoon (Monday, March 25), Andy Street, the Mayor of the West Midlands, said: “Whilst I will not provide a running commentary on ongoing commercial negotiations, it is an established fact that Coventry Airport is the only site in the UK with planning permission for a Gigafactory - sitting within the West Midlands Investment Zone. 

“It is also an established fact that we are in discussions with a number of global battery manufacturers about the future occupancy of the site and the nature and progress of these conversations has to remain confidential.

“The West Midlands is the UK’s automotive heartland, and the logical home for the country’s next Gigafactory. We are all working incredibly hard to make that happen, as part of the wider plans to create a UK Centre for Electrification and Clean Energy (Greenpower Park).”

It is claimed that the deal would be a major coup for the Conservatives ahead of the general election, not least because the battery-maker has opted for the UK rather than the EU or the US, where the Biden administration is offering a series of incentives for green technologies under the White House’s Inflation Reduction Act.