£190m ‘megafactory’ plan for Dundee

Plans for a battery-cell factory in Dundee, Scotland, valued at between £160m and £190m, have been announced.

Manufacturer AMTE Power said it would use the facility to produce batteries to electrify vehicles, homes and industries as part of the economic transition to a net-zero economy.

Renewable energy will be used on site, towards making the manufacturing process itself net-zero in carbon.

The proposed factory is about 214,000 square feet with a 0.5GWh capacity. It has been dubbed a ‘megafactory’, on a smaller scale than the several recent ‘gigafactories’ announced in the north of England for the production of electric-car batteries.

The company said about 215 high-skilled on-site jobs and 800 jobs across the supply chain are expected to be created, with a focus on local recruitment.

AMTE Power chief executive Kevin Brundish said battery cells were “fundamental” to enabling the UK’s energy transition.

He added: “The site at Dundee is the ideal location for a megafactory. It has local industry knowledge, and is close to our current and future customers in energy storage.”

The tendering process for the main contractor will begin in the second quarter of 2023, before which a company will be appointed for design development.

Construction is planned for completion by late 2025.

Battery factories are a growth area for the construction market as decarbonisation efforts ramp up. Earlier this week, NG Bailey won a £60m contract to work on the extension of a vehicle battery plant in the West Midlands.

ISG was selected to build a £3bn gigafactory in Blyth, Northumberland in December 2020, after which its owner joined the board of client Britishvolt. Meanwhile, Wates is delivering a £450m gigafactory for Envision in Sunderland.

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