A high tech battery manufacturing plant in Dundee would see an investment of at least £160 million and create more than 200 jobs.
AMTE Power has announced Dundee as the preferred location for a megafactory capable of producing eight million batteries a year.
The company intends to set up at the former Michelin tyre factory, now known as Michelin Scotland Innovation Parc (MSIP).
The talks – previously revealed by The Courier – would see an investment of between £160m and £190m.
AMTE said 215 highly-skilled jobs would be created on-site.
A further 800 jobs would also be created in the wider supply chain during the factory’s development and operations.
The primary focus of the factory will be to produce products to serve the energy storage and electric vehicle markets.
Why Dundee is ideal location for battery factory
AMTE will utilise cell manufacturing experience gained through its Thurso plant to create a “world-leading” facility in Dundee.
Discussions to come to Dundee have been on-going for more than a year but AMTE has now signed a binding letter of intent with MSIP to reserve the largest building on the site.
A formal lease will be signed at the end of this year with the factory planned to be up and running in the second half of 2025.
Kevin Brundish, chief executive of AMTE Power, said: “We are excited to announce Dundee as our preferred location for our first megafactory, a quantum leap for AMTE.
“The change in our execution strategy will accelerate our journey to mass manufacture of high value added, differentiated cells.
“The megafactory will be a platform from which AMTE can harness our advanced in-house capabilities to build manufacturing plants to meet the huge demand for battery cells.
“It will allow us to rapidly scale up production and fast-track the path to achieving net zero.
“Battery cells are fundamental to enabling the UK’s energy transition.
“With this investment, we will play a key role in electrifying the vehicles, homes and industries of the future.”
The chief executive described Dundee as the ideal location.
He adds: “It has local industry knowledge and is close to our current and future market in energy storage.”
Jobs news hailed by council leader
The factory will be funded by combination of grants, as well as traditional and government assisted debt and equity.
AMTE has received an indicative offer letter from Scottish Enterprise regarding a potential package of funding and business support.
Dundee City Council leader John Alexander said: “This is an exciting proposal which has the potential to deliver hundreds of direct and supply chain jobs.
“All partners are committed to delivering on the vision that we had for MSIP following the closure of the tyre factory.
“AMTE’s proposed megafactory is a great fit with that vision and would build significantly on the successes that have already been achieved in securing tenants for the Parc. We want to be at the forefront of new technologies.
“We want to have a workforce with the right skills for future needs. And, ultimately, we want to create sustainable employment for local people.
“We look forward to working closely with local and national partners to secure this major investment in Dundee.”
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