The UK battery industry could see a revival with local LFP production

The UK battery industry, once in decline, could see a revival with the introduction of locally produced lithium iron phosphate (LFP), a crucial component of electric vehicle (EV) batteries.

Behnam Hormozi, founder of Integrals Power, believes that producing a cleaner, higher quality version of LFP in Britain could reduce dependence on Chinese imports and revitalize the domestic battery supply chain.

“These nanoparticles are so small that if you touch them without gloves, they go straight into your fingers,” says Hormozi, holding a jar of black powder. This fine black dust, LFP, is essential to about 40% of electric cars sold last year, used to make cathodes where electrons flow from the anode. Despite its cost-effectiveness and abundance, LFP was initially overshadowed by nickel and cobalt batteries due to its lower energy density. However, recent improvements have led to a resurgence in popularity among automakers, including Tesla.

Currently, more than 90% of LFP is produced in China, raising concerns among Western automakers about supply chain security. Hormozi wants to change this with Integrals Power, Britain’s first LFP supplier, which has just started its production facility in Milton Keynes. Although the factory’s current production is modest, enough for only 250 cars per year, the goal is to present a cleaner production method and higher quality material than that made in China.

Integrals Power plans to produce 10,000 tonnes of LFP annually by the end of this decade. Hormozi is optimistic about Britain’s potential to support a fast-growing battery industry, despite setbacks such as those from the Britishvolt government. He believes the key challenge facing UK battery cell manufacturers is sourcing materials, a gap that Integrals Power is looking to fill.

Signs of growth in the UK battery industry include Tata’s gigafactory in Somerset and potential projects from EVE Energy in Coventry. Labor has pledged £1.5 billion to support new facilities, while Integrals Power is seeking £40 million to £60 million in government funding for a £200 million manufacturing plant.

Hormozi emphasizes the environmental benefits of their production method, which avoids the toxic practices of many Chinese manufacturers. Instead of crushing metal compounds and releasing contaminants, Integrals Power dissolves pure lithium, iron and phosphorus in water before heating it to create a fine powder. This process improves control over the atomic structure of the powder, increasing the energy density and range of EVs by 30%, with further improvements expected with the addition of manganese.

Hormozi argues that Western governments should provide more subsidies and raise tariffs for Chinese companies to level the playing field. While the EU and US have imposed tariffs on Chinese car imports, Britain has maintained a 10% tariff. Hormozi believes stronger action is needed to achieve net zero targets sustainably.

“Net zero is a great goal, but without subsidies and tariffs we cannot achieve it. Only then will we have a fair basis to compete on,” concludes Hormozi.