Investor not yet secured for planned gigafactory

CGI of how the gigafactory could look

A planned gigafactory has not yet secured an investor, months after a deal was reported to be within reach for a plant that would manufacture batteries for electric vehicles (EVs).

In March, the then West Midlands mayor Andy Street said the factory, earmarked for land near Coventry Airport, in Baginton, needed private investment to get it over the line.

Talks with battery manufacturers were said to be at an “advanced” stage last year, and the Sunday Times reported in March a firm was on the brink of committing billions to the scheme.

Coventry councillor, Jim O'Boyle, said conversations with a number of potential investors from around the world were ongoing.

The lack of investment comes after widespread reports of a global slowdown in growth of EV sales this summer.

In an interview with the Local Democracy Reporting Service, Mr O'Boyle said that investment had not been paused, but the market had seen a "correction" and claimed this would resolve.

“It will carry on a trajectory upwards. And that is the natural cycle of things with the automotive sector, it’s feast and famine," he said.

Coventry City Council has stated the planned factory could attract £2.5bn of investment and create up to 6,000 new jobs overall.

The West Midlands Combined Authority (WMCA)’s investment zones board recently approved £2m in funding for the site, which will go on technical work to support a future planning application by an investor.

More funding from a planned £35m package to improve the area’s transport and power connections was set to be released next year, the authority added.