£160m battery manufacturing factory in Dundee to create more than 200 jobs

By Rob McLaren

July 28 2022, 8:00am

The proposed AMTE Power factory at the former Michelin tyre factory site in Dundee. Image: AMTE Power.

A hi-tech battery manufacturing plant in Dundee would see an investment of at least £160 million and create more than 200 jobs.

AMTE Power has announced Dundee as the preferred location for a megafactory capable of producing eight million batteries a year.

The company intends to set up at the former Michelin tyre factory, now Michelin Scotland Innovation Parc (MSIP).

The plans – previously revealed by The Courier – would bring an investment of between £160m and £190m.

AMTE said 215 highly-skilled jobs would be created on-site.

It would also create economic benefits for the surrounding region.

A further 800 jobs are expected to be created in the wider supply chain during the factory’s development and operations.

Thurso-based AMTE specialises in lithium-ion and sodium-ion batteries.

The primary focus of the Dundee factory will be to produce products to serve the energy storage and electric vehicle markets.

The value of the batteries produced in Dundee would be around £200m a year.

Why Dundee is ideal location for battery factory

AMTE will utilise cell manufacturing experience gained through its Thurso plant to create a “world-leading” facility in Dundee.

Discussions to come to Dundee have been ongoing for more than a year.

AMTE has now signed a binding letter of intent with MSIP to reserve the largest building on the site.

A formal lease will be signed at the end of this year with the factory planned to be up and running in the second half of 2025.

Kevin Brundish, chief executive of AMTE Power, said: “We are excited to announce Dundee as our preferred location for our first megafactory.

“It will allow us to rapidly scale up production and fast-track the path to achieving net zero.

“Battery cells are fundamental to enabling the UK’s energy transition.

“With this investment, we will play a key role in electrifying the vehicles, homes and industries of the future.”

The chief executive described Dundee as the ideal location, highlighting the skilled workforce and good transport links.

AMTE also expects there will be “minimal” planning permission required to convert the existing building.

Mr Brundish adds: “Dundee has local industry knowledge and is close to our current and future market in energy storage.”

Major boost to Michelin Scotland Innovation Parc project

A delighted Greig Coull, chief executive of MSIP, said: “AMTE Power recognises MSIP as an ideal location to grow their business.

“It appreciates the ready access to a highly skilled workforce, and to sustainable and renewable energy, as well as other advantages such as the excellent space provision, the daily interaction with like-minded industry peers, and the numerous collaboration opportunities we afford.

“The anticipated jobs, both at MSIP, and more broadly across the supply chain, will have a significant impact on the local and national economy, underlining a key part of MSIP’s mission.”

AMTE commercial director David Pell previously told The Courier that the MSIP site ethos is among the reasons it wants to come to Dundee.

He said: “There are a number of things that attract us to Dundee. Firstly our heritage as a Scottish company.

“Secondly, we see Scotland as progressive in terms of its drive and focus on net zero.

David Pell, commercial director of AMTE Power, attends an event at MSIP in Dundee.

“Thirdly is the real commitment not just to putting the supply chains in place but also the skills base. We see a real commitment to this at MSIP.”

Jobs boost welcomed by council leader

Dundee City Council leader John Alexander said AMTE coming to Dundee would perfectly fit the vision for the future of the former tyre factory.

He adds: “AMTE’s proposed megafactory would build significantly on the successes that have already been achieved in securing tenants for the Parc. We want to be at the forefront of new technologies.

“We want to have a workforce with the right skills for future needs. Ultimately, we want to create sustainable employment for local people.

“We look forward to working closely with local and national partners to help progress AMTE’s plans and secure this major investment in Dundee.”

Funding for £160m Dundee battery factory

The factory will be funded by combination of grants, as well as traditional and government assisted debt and equity.

AMTE has received an indicative offer letter from Scottish Enterprise regarding a potential package of funding and business support.

The company has the expectation the project will receive “significant amounts of additional funding offers on favourable terms.”

Minister for business, trade, tourism and enterprise Ivan McKee confirmed support for the project.

How Inside how the MSIP innovation hub could look. — How the inside of the MSIP innovation hub could look.

He said: “The Scottish Government will continue to work alongside our enterprise agencies and local partners to help support AMTE in progressing their plans.”

New strategy for AMTE

AMTE Power describes the Dundee proposal as a megafactory – a smaller scale, more specialised facility than a gigafactory.

The size of this more automated facility is so large it would cover the entire 32-hectare MSIP site at Baldovie.

The focus of the Dundee operation will be on creating high value products and delivering them to customers at pace.

The plans for the Dundee site are to produce over 25,000 batteries per day or eight million a year.

The battery cells produced are likely to fall into two product categories:

Ultra-High Power: developed with the automotive industry for high performance vehicles
Ultra-Safe: for the energy storage sector. These cells are attracting most advanced market interest.

AMTE notes this megafactory model is “repeatable and scalable” and is a stepping stone towards building gigafactories in the future.

Meanwhile its existing facility in Thurso will remain a core manufacturing facility.

Shares in AMTE rose on news of the Dundee plans. Early trading increased its share price by 22.5p to 87.5p, a jump of 35%.

The transition from Michelin to MSIP

The Courier has been following the journey of the Michelin tyre factory being turned into the Michelin Scotland Innovation Parc every step of the way.