The Coventry Airport gigafactory, whose planning approval is due to expire in March 2025, also remains in limbo after facing a failure in gaining private investment and a worldwide slide in demand for EVs.
The ambitious idea to construct a gigafactory near Coventry Airport, scheduled to expire in March 2025, has faced serious obstacles. It got off to a promising start with significant public backing but hasn’t been able to draw in a private investor to cast doubt on its prospects.
In March 2024, the UK government will commit £35 million to the Coventry City Council to develop the property, in a bid to attract a battery manufacturing site to the city. It forms part of an overall £160 million investment package earmarked to spur the local economy and create up to 6,000 jobs through a West Midlands Investment Zone.
The website has not been able to attract a committed investor so far. Coventry City Council admitted in October 2024 that although talks with potential investors were still ongoing, no firm deals had been agreed. This was said at a time when the world was experiencing a slump in demand for electric vehicles (EVs), which has impacted investment decisions in the sector that produces EV batteries.
Moreover, the latest UK budget, which had put much emphasis on green industries, did not include the proposal for the gigafactory in Coventry. The local business leaders were not very pleased since this effort desperately needed direct government assistance.
As the deadline looms in March, the fate of the Coventry gigafactory remains uncertain. Without a confirmed investor, the expiration of planning permission could be one of the greatest setbacks for this region’s goal of becoming the hub for electric vehicle battery production.
