Announcement
AMTE Power PLC : AMTE Power agrees contract with UKBIC
RNS Number : 9412B
AMTE Power PLC
06 October 2022
Thursday 6 October 2022
AMTE POWER PLC
("AMTE Power", "AMTE" or the "Company")
AMTE Power agrees production contract with the UK Battery Industrialisation Centre for its Ultra High Power cells
Highlights:
· Milestone achievement: framework contract signed with the UK Battery Industrialisation Centre ("UKBIC") to produce up to 60,000 Ultra High Power cells per year for the high power automotive and fuel cell electric vehicle markets
· Ultra High Power automotive cell demonstrates a consistent six-minute full charge time in extensive trials
· The contract with UKBIC starts in January 2023 for anticipated sales to customers in sufficient scale to allow them to progress to in-vehicle trials
· Agreement is a key milestone to upscale production ahead of mass commercialisation plans as AMTE Power progresses towards its first MegaFactory in Dundee, Scotland, which is underpinned by the growing pipeline of potential business with opportunities of circa £240 million across the AMTE Power product range
AMTE Power moves to scale manufacturing at the UK Battery Industrialisation Centre
AMTE Power, the developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, announces that it has signed a contract to manufacture its Ultra High Power cells at UKBIC in Coventry to support the next phase of its commercialisation plans.
This is a significant milestone for AMTE Power. Under the agreement the Company can request UKBIC to manufacture up to 60,000 of its Ultra High Power cells each year, over an initial term of 24 months. This will enable AMTE Power to deliver its first Ultra High Power cells, in sufficient scale to allow customers to progress through to in-vehicle trials, as the industry transitions away from traditional fuels.
In August 2022, AMTE Power announced good progress in manufacturing trials for the Ultra High Power cell at UKBIC, with cells performing well against the Company's target specification when produced on UKBIC's commercial scale equipment. In particular, the Ultra High Power cells' low internal resistance supports exceptional power delivery and very fast charging, with current testing demonstrating a full charge in six minutes.
Ramping up production of the Ultra High Power cells at UKBIC is due to start from January 2023, generating initial revenues for the Company and enabling the business to meet growing demand from within the automotive sector principally for high performance Electric Vehicles ("EVs") and Fuel Cell Electric Vehicles ("FCEVs"). AMTE Power has existing non-binding memoranda of understanding in place with key automotive partners Cosworth, Viritech and MAHLE Powertrain, in addition to development agreements with Sprint Power, Eltrium and BMW.
The use of UKBIC to manufacture cells is a key milestone to upscale production ahead of mass commercialisation plans as AMTE Power progresses towards its first MegaFactory in Dundee, Scotland. This agreement will ensure products can be delivered to customers in advance of the opening of its planned MegaFactory, which is underpinned by the growing pipeline of potential business with opportunities of circa £240 million across the AMTE Power product range.
Commenting on the contract, Kevin Brundish, CEO, AMTE Power, said:
"Having already secured significant early interest in our Ultra High Power cell from major automotive partners, this contract will enable us to bring our products to market sooner while we progress our own MegaFactory.
"This new phase in our journey builds on the partnership that we've established with UKBIC through cell development. It is testament to the investment that the UK Government has made in this market-leading battery manufacturing and scale-up facility that we are now able to put that development work into practice with the first production contract at UKBIC to get cells into customers' hands as we power the energy transition."
Jeff Pratt, Managing Director, UK Battery Industrialisation Centre, added:
"We're delighted to be entering into this landmark agreement with AMTE Power to transfer their design into UKBIC and then manufacture their next generation Ultra High Power cells at volume, allowing us to further support the company's significant commercialisation plans. Advanced battery cells being manufactured at volume in the UK are a vital component of ensuring the UK prospers from the energy transition towards Net Zero. This latest agreement - our biggest to date - is further demonstration of the unique value of UKBIC which, since being opened just over a year ago, is already delivering incredibly successful outcomes for the UK with customers like AMTE."
Jackie Doyle-Price, Minister for Industry said:
"Batteries are the foundation of the industries of the future, from electric vehicles to renewables, and building a domestic supply chain for them is central to our plans to grow the economy, create jobs and bolster energy security.
"This collaboration between two government-backed partners will see AMTE's battery production ambitions take the next step, and help the UK seize on the opportunities this technology presents."
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
ENDS
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Enquiries: |
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AMTE Power plc |
Tel: +44 (0)1847 867 200 |
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Kevin Brundish (Chief Executive Officer) |
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James Hobson (Chief Financial Officer)
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WH Ireland Limited (NOMAD and Joint Broker) |
Tel: +44 (0)207 220 1666 |
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Chris Fielding / James Bavister / Ben Good
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Panmure Gordon (UK) Limited (Joint Broker) |
Tel: +44 (0)207 886 2500 |
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John Prior / Harriette Johnson (Corporate Finance) James Sinclair-Ford Hugh Rich (Corporate Broking) |
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Camarco (Financial PR) |
Tel: +44 (0)20 3757 4992 |
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Ginny Pulbrook / Rosie Driscoll |
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Notes to Editors:
AMTE Power was founded in 2013 and is a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets. In March 2021, the Company was admitted to trading on the AIM market of the London Stock Exchange. The Company is focused on launching a series of next generation battery cells based on new chemistries and cell structures that are designed to solve key problems in power delivery, energy performance, and safety. These new products are targeted at a range of specialist markets including the electric vehicle industry and energy storage sector.
AMTE Power's purpose-built cell manufacturing facility in Thurso, Scotland has the second largest cell manufacturing capacity in the UK and the Company also has a product development team based in Oxford. AMTE's proposed state-of-the-art MegaFactory in Dundee, Scotland is expected to be operational and in production by Q3 2025 and will be capable of producing over 25,000 high added value batteries per day enabling the Company to rapidly scale up cell production.
For further information visit the Company's website: www.amtepower.com
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