Shares of Thurso-based battery cell developer AMTE Power plc rose about 12% on Thursday after it announced it signed a contract to manufacture its Ultra High Power cells at the UK Battery Industrialisation Centre (UKBIC) in Coventry to support the next phase of its commercialisation plans.
“This is a significant milestone for AMTE Power,” said the company.
“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.”
AMTE Power announced in August “good progress” in manufacturing trials for the Ultra High Power cell at UKBIC.
AMTE said the 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,” added the company.
“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.”