3,500 jobs hope after factorY site boost:
PLANS for a factory producing electric car batteries that would bring thousands of jobs for the Vale of Glamorgan have moved a step closer.
Britishvolt’s chief operating officer, Orral Nadjari, said a memorandum of understanding (MOU) has been signed with the Welsh Government with the aim to start building the factory next year.
The company has signed a lease for a former Royal Air Force base at Bro Tathan business park at St Athan.
The factory would produce batteries for electric vehicles, and would join the Aston Martin electric car plant which opened in St Athan in 2019.
The company estimates the initial £1.2bn investment into the site will eventually lead to around 3,500 jobs.
Mr Nadjari said it had the go-ahead for the actual site which would allow them to start designing the factory, with the hope of signing the final contract in August.
He said: “Wales has welcomed us with open arms and exceptional due diligence and we believe the country has a vast untapped potential. We finally came to an agreement with the Welsh Government so we are absolutely excited and very happy with the outcome of the negotiations.
“This agreement is one major milestone which allows us to start prepping to put the shovel in the ground in 2021.
“As part of the first step to signing the final agreement, which we are hoping to complete in the next six weeks, we are looking at a lease agreement with the Welsh Government and hopefully an option to purchase further down the line.
“We are not looking at any other sites.”
He said one of the main reasons they liked the South Wales site was because of the amount of space there would be for other companies to establish themselves.
“We want to become a hub for battery construction in the South Wales area,” he added. “The South Wales site is a top priority and we will do anything that we can to make it happen.
“The Welsh Government has done an impeccable job in co-ordinating with us. We just need to continue at the same speed. We are extremely happy.
“Hiring local people, including those currently out of work, and developing strong relationships with nearby educational facilities will be a priority for us to ensure a stream of skilled staff.
“Britishvolt will also encourage other businesses to invest in the region with the aim of creating a ‘hub’ of battery electrification – building out our very own infrastructure and supply chain ecosystem, which will create thousands more jobs.”
First Minister Mark Drakeford described the agreement as an “important next step ahead”.
He told the BBC: “There is still a lot of work to do. We were one of two locations left on the shortlist and the MOU means the company is now committed to working exclusively with the Welsh Government. We are the only site they are working to develop.
“It doesn’t mean it is in the bag. It is important to say that. There are some things left to do, including convincing the UK Government to provide funding for its automotive transformation fund. But it is an important step on the journey and we are very encouraged by it.”
Britishvolt had also been considering a site in Coventry. Mr Nadjari said the company wants to begin construction in the spring of 2021 with the plant fully operational by the middle of 2023.
The company said that after six months of careful analysis, the site was narrowed down from more than 40 locations, due to a number of factors including, import/export accessibility, availability of labour and skilled staff, and convenient geographical proximity to customers and local industrial companies.
The huge “gigafactory” will have one of the top three largest footprints in Europe, stretching 1km long and standing 30m tall across an 80-hectare site.
The company said it will employ “at least 3,500 local Welsh people”.
It estimates the factory will also create a further 10,000 to 15,000 nondirect jobs.
The factory would be a significant boost to Wales’ automotive industry, especially as earlier this month Ineos put on hold its plans to build a new 4x4 vehicle plant in Bridgend which would have created 500 jobs.
Britishvolt’s chief executive Lars Carlstrom last month said: “Our ambition is to become one of the greenest battery producers worldwide, which will be facilitated through the creation of our very own solar park, ensuring a near carbon neutral electricity input.
“Our state of the art and high efficiency gigaplant will employ at least 3,500 local Welsh people.
“These will be across a wide range of disciplines and will create a local ecosystem of 10,000 to 15,000 further jobs for the wider supply chain – including material suppliers, contractors and local services.
“By the third quarter of 2023, we plan for the first stage of our plant to be fully functional, and envision that between 40% and 60% cent of the initial £1.2bn of investment will be injected directly into the chosen community, representing a real catalyst for growth in the local economy and the UK.”