Manufacturer Britishvolt has announced that it has signed an MOU with the Welsh Government as both parties work together on plans to develop a commercially viable 30 GWh battery manufacturing plant, and supplementary 200MW solar plant, at the former RAF base at Bro Tathan, Vale of Glamorgan, South Wales.

Both parties have now signed a memorandum of understanding (MOU), to collaborate on the potential of building the UK's first full cycle battery cell gigaplant subject to UK government funding through the Automotive Transformation Fund, to produce lithium-ion cylindrical and pouch cells primarily servicing the automotive market.

A successful outcome of the partnership could enable the scalable production of a world-class portfolio of lithium-ion batteries, creating and expanding an onshore manufacturing ecosystem and supply chain to support the country's "Road to Zero" emissions targets, and unprecedented transition to electrification. It is anticipated that the initial £1.2 billion of investment from the company could eventually lead towards up to 3,500 jobs.

Construction is scheduled to begin in early 2021.

Orral Nadjari, CEO and Founder at Britishvolt comments: "We are immensely proud to announce plans to work exclusively with the Welsh Government to develop the UK's landmark battery gigaplant. Wales has welcomed us with open arms and exceptional due diligence and we believe the country has a vast untapped potential. Hiring local people, including those currently out of work, and developing strong relationships with nearby educational facilities will be a priority for us to ensure a stream of skilled staff. Britishvolt will also encourage other businesses to invest in the region with the aim of creating a 'hub' of battery electrification – building out our very own infrastructure and supply chain ecosystem, which will create thousands more jobs.

Cllr Neil Moore, Leader of the Vale of Glamorgan Council, said: "I welcome the news that an agreement to locate the new Britishvolt factory in St Athan has moved a step closer.

"If it can be finalised, this would represent an important development for the Vale of Glamorgan as a whole and the Bro Tathan Enterprise Zone in particular, bringing significant economic benefits to the area.

"Already a leading UK aerospace, manufacturing and engineering location, the enterprise zone has bought large-scale employment to South Wales, not least through the Aston Martin technology plant that is sited there. Hopefully, this project can be the next chapter in that success story."

Cllr Lis Burnett, Deputy Leader and Cabinet Member for Education and Regeneration, said: "The Council is committed to attracting high-profile economy-boosting business to the Vale and we will continue to work with Welsh Government towards that goal.

"This is a further sign that the Vale of Glamorgan is an attractive place to do business and I will watch with interest as this situation develops.

"The Council's economic development team provide a range of support to businesses that choose to establish themselves here, making this a first-class base from which to operate."