Australian start-up Recharge’s investments in UK assets could revive domestic battery manufacturing hopes

The UK’s hopes to secure its domestic and sustainable electric vehicle (EV) batteries ecosystem could see a new light with Recharge Industries’ investments in the country’s nascent battery value chain

The Australia-based battery start-up announced a preliminary agreement with early-stage UK-based lithium refiner Tees Valley Lithium to supply toll-processed lithium to Recharge’s battery operations, it said in a release on Tuesday February 7.

Recharge Industries is owned by New York-based Scale Facilitation Partners, and has also entered an agreement to buy UK-based start-up Britishvolt’s business and assets, it was reported on Monday February 6.

The Britishvolt gigafactory project demonstrated the difficulty of getting new EV projects off the ground without firm government support.

“Start-ups have a lot of challenges, so it is not surprising that some fail, especially if they are starting from scratch,” William Adams, head of battery raw materials research at Fastmarkets, said regarding Britishvolt’s collapse.

“They need the know-how, they need the equipment to build the production lines, at a time when many other battery factories are also being built or expanded,” he added. “[And] they need to lock-in a supply of battery raw materials, again at a time when some many others want to secure supply too.”

Ambitious goals in achieving a move towards new generation energy

Western economies, including the United Kingdom, are increasing their efforts to secure the raw materials and the infrastructure needed for the ambitious goals of the energy transition. The development of a localized and sustainable rechargeable battery ecosystem plays a key role in their strategies.

The US has recently seen a string of hefty investment announcements in the EV battery ecosystem, taking advantage of incentives arising from the country’s 2022 Inflation Reduction Act, which aims to encourage mining and manufacturing in the US and create a more integrated supply chain for EVs, which have typically relied on imports for critical minerals and battery components.

The EU launched the Green Deal Industrial Plan at the beginning of February, to speed up the energy transformation of the EU. The plan aims to complement previous initiatives and simplify the regulatory environment for the quick deployment of net-zero manufacturing capacities, facilitate access to funding and secure supply of critical materials.

Recharge is also building a facility in Australia to produce batteries for EVs.

Want to read more on policy?

Find out more about policy changes and their impact on the market. Read our recent insights report into policy changes in the US and EU and their effect on the already volatile battery materials and electric vehicle market.

  • Discover how US and EU policies may present obstacles in the journey to a more sustainable future
  • Find out about the impact these policies have on the future of key battery materials
  • Read about how these policies are influencing the emergence of regional supply chains
  • Use our interactive visualizations to find out more information on the policies, timelines and what this means for your business
What to read next
Glencore’s Gary Nagle might have spoken too soon when he said that his company wouldn’t be hit by a nickel fraud similar to that seen by its rival, Trafigura
Join us for the Fastmarkets Asian Battery Materials Conference in Singapore. Don’t miss out on a packed agenda. Find out some key reasons to attend
The Critical Raw Materials Act (CRMA) proposed by the European Commission has been welcomed by stakeholders familiar with the nascent European battery ecosystem as a step toward achieving a sustainable and reliable supply of materials vital to the region’s ambitious energy transition goals
The European Union’s much-anticipated Critical Raw Materials Act, announced on Thursday March 16 by European Commission president Ursula von der Leyen, has set out new lists of the raw materials now formally designated as strategic and critical
India is increasing efforts to secure supplies of the critical raw materials needed for energy transition by exploiting its internal resources and building partnerships with foreign countries
The London Metal Exchange is facing lawsuits seeking damages collectively worth more than half a billion dollars for losses that investors allege they suffered as a result of nickel trades being canceled by the exchange last year
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.