How has the demise of BritishVolt affected Britain's EV battery hopes?

The latest news on the BritishVolt website states, "on 17 January 2023, the Company entered Administration..."

Despite the growing global need for battery power and the UK's apparent wish to become an attractive country for investment, BritishVolt and the hopes for a gigafactory in the Midlands, the company is no more.

British Volt was viewed as an essential part of the UK's plans to expand its electric vehicle production capabilities. In January 2020, the company was granted a provisional offer of government funding through the Automotive Transformation Fund, an £850 million initiative to promote the electrification of Britain's automotive industry.

So, what went wrong?

The company had experienced significant challenges due to the COVID-19 pandemic, with reduced demand for their products and services leading to financial strain. 

The company had also been unable to secure additional funding from investors due to the uncertain economic climate and competition from larger, more established energy storage companies.

Ultimately, these challenges proved too much for the company, leading to British Volt entering into administration.

So is this the end of the British dream to become a global player in EV battery production? The government's woes have increased considerably over recent months, with challenges of cutting inflation being met with calls for an investment plan to boost the economy amidst economists claiming the UK is the worst-performing country in the G7.

Are there any opportunities?

The simple answer is yes. The now-defunct BritishVolt factory could be used to produce sodium-ion batteries, the production process being very similar.

Additionally, the UK has been at the forefront of research into developing production-ready sodium-ion batteries. Numerous research projects are currently underway in universities and research laboratories across the country.

The UK's Advanced Propulsion Centre (APC) is currently funding a research project looking into the development of advanced sodium-ion batteries. The project, led by the University of Birmingham, is exploring the use of sodium-ion batteries in commercial applications, such as electric vehicles and energy storage systems.

The Faraday Institution has also granted funding to the University of Oxford for a research project focused on the development of advanced sodium-ion battery materials. The project is looking at the use of novel electrolyte materials and cell designs to improve the performance and safety of sodium-ion batteries.

Sodium-ion vs Lithium Ion Batteries

Sodium-ion batteries are a type of rechargeable battery utilising sodium ions instead of lithium ions to store energy. Sodium-ion batteries were first developed in the late 1990s and have been under research and development ever since.

Recent advancements in the development of sodium-ion batteries have made them a viable alternative for commercial use. The main advantages are greater energy density and higher energy efficiency. They are also much cheaper to produce than lithium-ion batteries, making them a more cost-effective option for many applications.

The development of sodium-ion batteries has seen them progress from research and development to commercial markets. Major companies such as Samsung and Panasonic have announced plans to launch sodium-ion batteries in the near future.

Despite the progress, sodium-ion batteries have a long way to go before they become mainstream energy storage options.

The UK has a great opportunity, the question is does the government have the foresight and intention to capitalise before companies such as CATL, Samsung and Panasonic steal the show?