8th Feb 2021 10:23
(Alliance News) - Lithium battery maker AMTE Power PLC on Monday outlined its plans to raise GBP7 million as part of an initial public offer.
It intends to list on London's AIM in March.
AMTE develops lithium-ion battery cells for high-performance vehicles and other specialist uses at its manufacturing plant in Thurso, Scotland. It said it has access to intellectual property from FTSE 250-listed defence technology firm QinetiQ PLC.
The firm was co-founded in 2013 by Kevin Brundish, together with several others, including former colleagues from QinetiQ, with the objective of developing a portfolio of highly differentiated, lithium-ion and lithium-ion derivative battery cells to meet the needs of specialist customers.
"Such customers, which include manufacturers of high-performance vehicles and specialist equipment, are not, in the directors' experience, the primary focus of the international battery cell manufacturers, thereby creating a significant and scalable opportunity for the company," the firm added.
AMTE noted it has been working in collaboration with a significant number of industrial businesses, including nine UK-based automotive manufacturers and component suppliers - including Jaguar Land Rover, Cosworth and Williams.
"Early on we chose to focus on the requirements of specialist customers whose power, performance and endurance needs are, we believe, outside the scope of the international manufacturers and also to not simply be a developer but have the manufacturing capability to deliver our products. The combination of which, we believe, differentiates AMTE and places us in a highly advantageous position," Chief Executive Kevin Brundish said.
AMTE has entered into a framework agreement giving it access to the UK Battery Industrialisation Centre cell manufacturing facility and, in 2022, intends to commit to building a new UK manufacturing facility with a capacity of about 2 gigawatt hours per annum.
Brundish said the new facility is part of the company's medium term outlook
He continued: "However, today's announcement is about funding the final development and production of the company's three advanced battery cells where we see significant commercial opportunities."
AMTE has three "highly differentiated" battery cells in development, with one expected to enter production in each of the next three years.
"From the increased market uptake of electric vehicles and personal devices, to growing environmental concerns and increasing regulation and political pressure to shift away from the use of fossil fuels, as exemplified by the UK government's plan for a 'Green Industrial Revolution', there has been a rapid rise in global demand for lithium-ion and lithium-ion derivative battery cells," AMTE said.
It added: "Traditionally, the dominant market for lithium-ion batteries was consumer electronics, however over recent years, the automotive sector has become increasingly responsible for the substantial increase in demand, as electrification of vehicles has become a legislative requirement in many major nations, particularly in Europe."
AMTE noted it will focus on three specialist markets: automotive, oil & gas and energy storage.
By Paul McGowan; [email protected]
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