The UK battery industry, which has been in decline, could see a boost with the introduction of locally produced lithium iron phosphate (LFP), a key component in electric vehicle (EV) batteries.
Behnam Hormozi, founder of Integrals Power, believes that producing a cleaner, higher-quality version of the LFP battery in the UK could reduce reliance on Chinese imports and revitalise the domestic battery supply chain.
“These nanoparticles are so small that if you touch them without gloves, they will go right into your fingers,” Hormozi says, holding up a jar of black powder. This fine black dust, LFP, is essential for about 40% of electric cars sold last year, and is used to make the cathodes where electrons flow from the anode. Despite its cost-effectiveness and abundance, LFP was initially overshadowed by nickel-cobalt batteries because of its lower energy density. However, recent improvements have seen it resurface in popularity among automakers, including Tesla.
Currently, more than 90% of LFP vehicles are produced in China, raising concerns among Western carmakers about supply chain security. Hormozi aims to change this with Integrals Power, the UK’s first LFP supplier, which has just started operations at its production facility in Milton Keynes. While the facility’s current output is modest, producing just 250 vehicles a year, its aim is to demonstrate cleaner production methods and higher quality materials than those made in China.
Integrals Power plans to produce 10,000 tonnes of lithium battery cells a year by the end of the decade. Hormozi is optimistic about the UK’s ability to support the nascent battery industry, despite setbacks such as the British Volt takeover. He believes the main challenge facing UK battery cell manufacturers is sourcing materials, a gap that Integrals Power aims to fill.
Signs of growth in the UK battery industry include Tata’s giant Somerset factory and potential EVE Energy projects in Coventry. Labour has pledged £1.5bn to support new facilities, while Integrals Power is seeking government funding of between £40m and £60m for a £200m production plant.
Hormozi emphasizes the environmental benefits of their production method, which avoids the toxic practices used by many Chinese manufacturers. Instead of crushing the metal compounds and releasing pollutants, Integrals Power dissolves pure lithium, iron and phosphorus in water before heating to create a fine powder. This process allows for greater control over the atomic structure of the powder, increasing the energy density and range of the EVs by 30%, with further improvements expected with the addition of manganese.
Hormozi believes Western governments need to provide more support and raise tariffs on Chinese companies to create a level playing field. While the EU and US have imposed tariffs on Chinese car imports, the UK has maintained a 10% tariff. Hormozi believes stronger measures are needed to sustainably achieve net-zero emissions targets.
“Net zero is a beautiful goal, but we can’t achieve it without subsidies and tariffs,” Hormozi concludes. “Only then will we be able to find a level playing field.”