Britishvolt and Glencore sign strategic partnership for long-term supply of cobalt

Britishvolt and Glencore sign strategic partnership for long-term supply of cobalt

August 17, 2021
Power On

As part of the deal Glencore has also made an undisclosed investment into Britishvolt, further endorsement of the world-class battery Gigaplant project

● Britishvolt, the UK battery champion, has entered a long-term cobalt supply agreement with the world’s largest producer, Glencore

● The deal highlights the need for strategic partnerships between raw material and battery producers on the road-map to net-zero; with Environmental, Social and Governance a growing focus of manufacturers and investors alike

● Glencore to support Britishvolt’s recycling and recycled content ambitions

Northumberland, 17/08/2021: Britishvolt, the UK’s foremost investor in lithium-ion battery cell technologies and associated R&D, has entered into a long-term strategic partnership for the supply of responsibly sourced cobalt with the world’s largest industrial producer and one of the largest recyclers, Glencore.

The news represents a major milestone for Britishvolt’s quest to assist vehicle OEMs on their roadmap to electrification. By securing one of the key battery ingredients from the Glencore cobalt brands, Britishvolt is significantly derisking its operation by obtaining long-term security of supply across its business.

Orral Nadjari, Britishvolt CEO/Founder:

“This is a huge step in the right direction for Britishvolt as we look to accelerate the transition to a low carbon society. By partnering with Glencore, we are locking in supply and derisking the project.

At the very heart of our business are our core ESG Principles and Commitments. Cobalt is a key ingredient in electric vehicle batteries and knowing that we are being supplied with responsibly produced cobalt is a signal to the market that we are living by our values.

This strategic partnership aligns perfectly with our ESG Principles, including ‘applying best practice wherever possible’ as well as ‘assessing labour, human rights and ethical procurement performance of our suppliers’.

We believe that to be a true pioneer in the battery cell manufacturing industry, Britishvolt must lead by example and ensure that its supply chains are as ethical, low carbon and sustainable as is possible.”

David Brocas, Head Cobalt Trader, Glencore, commented:

“We are delighted to be partnering with Britishvolt, a pioneer in UK electric vehicle battery technology and production. The UK has a unique legacy of automotive innovation and Britishvolt’s ambition to power the next generation of mobility will add to this rich history.

“Our commitment to support our partners in meeting their requirements for essential battery ingredients is key to underpinning long-term supply agreements. As the mobility and energy transition accelerates, so does future demand for battery metals such as cobalt, copper and nickel. Glencore is already a leading producer and supplier of these metals, helping to underpin our ambition of achieving net zero total emissions by 2050,” Brocas added.

Investors are increasingly interested in raw material sourcing strategies of battery cell manufacturers. With the main focus now on ESG-linked investments, this deal underscores to the market that Britishvolt is delivering on its objectives.

The development is a major boon for Northumberland, and indeed the country, and will bring around 3,000 direct highly-skilled jobs and another 5,000+ in the associated supply chains.

Britishvolt is on target to manufacture some of the world’s most sustainable, low carbon battery cells on the site of the former Blyth Power Station coal stocking yard located in Cambois, Northumberland.

The project will be built in three phases each of 10GWh to a total capacity of 30GWh by end-2027 onwards. This allows the business to keep on top of any technological advancements.

Once at full capacity, the Gigaplant will have a production capability equating to approximately enough cells for around 300,000 electric vehicle battery packs per year, intended primarily for the automotive industry.

It will be the first large full cycle Gigaplant in the UK.

Ends.

Safe Harbour.

Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectation intended to qualify for the ‘safe harbor’ under the U.S. Private Securities Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, competition including those factors which may affect our cost advantage, equipment procurement, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time contracts or time and material construction contracts, customer concentration, restrictions on immigration, industry segment concentration, our ability to manage international operations, reduced demand, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages related to battery service agreements, the success of the companies in which Britishvolt has made strategic partnerships, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies and unauthorised use of our intellectual property and general economic conditions affecting our industry. In addition, please note any forward-looking statements contained herein are based on assumptions we believe to be reasonable as of the date of this press release.

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