A battery maker in Thurso is to be lead supplier in a £5million project to enable high volume manufacture of equipment for electric vehicles.
AMTE Power will focus on bringing two lithium-ion batteries to “automotive readiness” during the three-year, government-funded “Ultra” initiative.
The company said it will be working closely with well-known global vehicle manufacturers.
As one of four supply chain companies involved, AMTE has been awarded £2.3m by the UK Government’s Advanced Propulsion Centre (APC), which is part-funding the scheme.
The firm’s Ultra High Power and Ultra Energy cells will be sent to project partners for external validation and trials in their electric vehicle prototypes, with the key aim of ensuring they are ready for volume manufacture.
AMTE chief executive, Kevin Brundish, said: “We are delighted to have been chosen to lead this project.
“The APC selects companies who they believe will be key players in the UK’s electric vehicle supply chain, and funds projects that will take products into this high volume market.
Working closely with leading automotive manufacturers and supply chain companies is an ideal position to be in as we work towards volume production of our products.”
The APC is focused on supporting the UK automotive industry in the lead up to the electrification of the vehicle market in 2030.
The three other supply chain companies involved in the Ultra project are: electric drive system designer, Magtec; fast-charging equipment maker, Petalite; and precision metal supplier, Avocet.
Magtec is participating with the aim of proving the Ultra Energy cell performance in two of its commercial electric vehicles.
Leading manufacturers involved
Leading automotive manufacturers will be closely involved in the project as steering partners, providing guidance on technical and commercial requirements of AMTE’s batteries.
AMTE, which was formed in 2013, was floated on the London Stock Exchange (LSE) Alternative Investment Market (AIM) in March.
Shares in the company had risen 6.69%, to £2.55, by the close of trading on Thursday, following the announcement of its involvement in the project.
Last month, the firm, which is already the UK’s second largest producer of energy storage cells, announced plans to develop a “gigafactory” as a global race to meet demand for electrification intensifies.
Mr Brundish added: “Importantly, this project will not affect the existing commercialisation plans for these cells, as set out at the time of our IPO.
“It will instead be it will instead be complementary and focus on readiness to mass produce for our targeted automotive client base.”