Shares in Thurso battery maker AMTE Power rocketed after it announced the award of a contract for the manufacturing of its “ultra high power” cells.
The Alternative Investment Market-listed company today described the move as a “milestone”.
Investors were impressed, with the stock up by more than 9% to 71p at market close.
The UK Battery Industrialisation Centre (UKBIC), based in Coventry, is expected to produce 60,000 of AMTE’s batteries annually for at least two years.
It means AMTE will be able to deliver its first ultra high power cells in sufficient scale for automotive industry customers to progress to in-vehicle trials as they move away from traditional fuels.
The use of UKBIC to manufacture cells will also allow AMTE to grow production in advance of mass commercialisation plans based on its first megafactory, in Dundee.
This is expected to deliver opportunities worth about £240 million across the AMTE Power product range.
Speaking to The Press & Journal earlier today, AMTE chief executive Kevin Brundish said: “With the Dundee announcement we said it would take some time to build capacity – that will take three years.
“We are seeing such interest in the market, we want to upscale capacity now. We have a couple of products and we see the UKBIC as near-term capacity.”
On AMTE’s operation in Thurso, Mr Brundish said: “We see exactly the same opportunity and a different product range.
“Thurso is going to play an important role for us as we see it as the long-term line, and it will continue to enable us to mature our products.”
The greater the production we achieve, the greater the headcount required to deliver that.”
Kevin Brundish, chief executive, AMTE.
AMTE’s boss was unable to put precise figures on any new jobs created by the UKBIC contract, or its value.
But the company has a recruitment plan which “goes behind anticipated production”, he said.
He added: “The greater the production we achieve, the greater the headcount required to deliver that.
“Of course we would expect the team to grow – there is skill base we are looking to bring online.
“Having already secured significant early interest in our ultra-high power cell from major automotive partners, this contract will enable us to bring our products to market sooner while we progress our own megafactory.
“This new phase in our journey builds on the partnership we’ve established with UKBIC through cell development.”
UKBIC managing director Jeff Pratt said: “Advanced battery cells being manufactured at volume in the UK are a vital component of ensuring the UK prospers from the energy transition towards net-zero.
“This latest agreement – our biggest to date – is further demonstration of the value of UKBIC which, since being opened just over a year ago, is already delivering successful outcomes for the UK with customers like AMTE.”
In August, AMTE said it had made “good progress” in manufacturing trials at UKBIC.
Ramping up production is due to start from January 2023, generating initial revenues and allowing the Caithness-based business to meet growing demand from the automotive sector – principally for high performance and fuel cell electric vehicles.
Conversation