The firm behind ambitious plans for a battery factory on the former Michelin site in Dundee insists the city is still the “preferred site”, one day after suggesting it could be tempted to the US to take advantage of President Joe Biden’s green subsidies.
Over the weekend, the Highland-based manufacturer hinted it is mulling a move because of the US’s new Inflation Reduction Act.
However, the company said on Monday it is “incredibly proud” of its UK heritage and is committed to expanding into the former Michelin factory site in Dundee.
AMTE reacted on the same day as First Minister Humza Yousaf told a trade union conference in the city he hopes to bring investment to Dundee.
‘Committed to Dundee’
In July last year, AMTE Power announced Dundee as its preferred site for its new £160 million project, which could bring more than 200 jobs.
The company specialises in lithium-ion and sodium-ion batteries for energy storage and electric cars.
Information from the American Senate shows the US will pour a colossal £369 billion into energy security and climate change programmes during the next 10 years.
Speaking to Sky News over the weekend, Mr Hollis said: “We don’t have a competitive environment in the UK at this moment in time.”
He added he had “to ask the question if the subsidies are available overseas”.
However, the ATME chief said on Monday: “We are incredibly proud of our UK heritage at AMTE and we want to remain a UK business.
“We have developed our technology here and our intention is to commercialise our products in the UK, using our Thurso facility and by scaling up production at our preferred gigafactory site in Dundee.
“Our plans would unlock hundreds of green collar jobs while supporting the UK’s wider push to deliver net zero.
“Like any good business, we are always monitoring the wider market and must factor the global context into our considerations, but we do not currently plan to relocate.
“We remain committed to Thurso and Dundee remains our preferred site.”
UK must grasp ‘fantastic opportunity’
Despite Mr Hollis’s reassurances for Dundee, he still put pressure on London, urging greater backing for the UK’s battery industry which is seen as crucial to the uptake of electric vehicles.
He added: “The UK has a fantastic opportunity, but it needs to grasp it now.”
In Dundee on Monday, the first minister said he was “concerned” AMTE might move, and said he would do everything within his powers to keep investment in the city.
He was speaking at the Scottish Trade Union Congress at Dundee’s Caird Hall when he made the comments.
Mr Yousaf said: “I am concerned to hear that and I will work right across the UK with other governments to see what can be done to attract investment to Scotland.
“Scotland has a very good track record of attracting inward investment, which is why I was dismayed by recent UK Government reports to curtail external activity.
“I will see what we can do within our powers, limited as they may be, to try to ensure that investment comes back to Dundee.”
Challenge for green jobs of the future
Mr Hollis’s warning echoes that of St Andrews University battery expert Sir Peter Bruce.
He said: “The future is green jobs and if we don’t get a stake in that, then Scotland and the UK will suffer, so the challenge is how.
“How do you get costs of the vehicle down?
“You either subsidise it or you try to make technology at lower cost.
“You probably have to do both – one of the biggest costs of an EV is the battery.”
He added: “The US offers significant subsidies for people to buy EVs provided the components that go into them are made in America so driving home-based manufacturing.
“The European Union is doing the same thing and it is important the UK looks seriously at work it is going to do or the danger is we lose out.”
Along with a number of other manufacturing cost rises, the price of raw materials has soared making battery elements cobalt and nickel more expensive.
Sir Peter is now also stressing the need to recycle these materials.
Conversation