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The expansion of the site would make EVE's plant twice the size of Nissan’s electric battery factory in Sunderland, a city in the North East of England. "The UK continues to be a magnet for big investments," said Dan Coatsworth, investment analyst at AJ Bell.
"We do not comment on media speculation," a spokesperson for the West Midlands Gigafactory told Euronews Business. She added: "West Midlands Gigafactory is the only available site in the UK that sits within an investment zone and has planning permission for a large-scale battery manufacturing facility.
EVE Energy has allegedly pledged an initial £1.2 billion to create a battery plant on the outskirts of Coventry, England. Some 6,000 jobs could be created if Chinese battery manufacturer EVE Energy goes ahead with proposals to build a gigafactory in central England.
The factory will produce lithium-ion batteries designed to be directly used by UK carmakers in next-generation EVs. Domestic battery manufacture is seen as crucial to the success of future UK car production and key for the transition to net zero, with around 200GWh needed by 2040 to meet demand from car manufacturers.
"The UK needs 100GWh of battery manufacturing capacity by 2030, but we did not see a clear government plan to deliver that ambition." EVE's project in Coventry could attract up to £2 billion in private investment, but this funding will likely rely on government subsidies worth hundreds of millions of pounds.
Last year, UK business secretary Kemi Badenoch warned that, in the interest of national security, the nation must not become "overly reliant" on Chinese battery technology. EU politicians also share these fears as EVE is in the process of building several European battery factories, notably in Hungary.
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