Britain’s battery industry, once in decline, could see a resurgence with the introduction of locally produced lithium iron phosphate (LFP), a critical component in electric vehicle (EV) batteries.

Behnam Hormozi, founder of Integrals Power, believes that producing a cleaner, higher-quality version of LFP in the UK could reduce dependence on Chinese imports and revitalise the domestic battery supply chain.

“These nanoparticles are so small that if you touch them without gloves, they’ll go straight into your fingers,” says Hormozi, holding a jar of black powder. This fine black dust, LFP, is essential for about 40% of electric cars sold last year, used to make cathodes where electrons flow from the anode. Despite its cost-effectiveness and abundance, LFP was initially overshadowed by nickel and cobalt batteries due to lower energy density. However, recent improvements have led to a resurgence in its popularity among carmakers, including Tesla.

Currently, over 90% of LFP is produced in China, causing concerns for Western carmakers about supply chain security. Hormozi aims to change this with Integrals Power, the UK’s first LFP supplier, which has just started operations at its production facility in Milton Keynes. Although the facility’s current output is modest, enough for only 250 cars a year, its goal is to showcase a cleaner production method and higher-quality material than that made in China.

Integrals Power plans to produce 10,000 tonnes of LFP annually by the end of the decade. Hormozi is optimistic about the UK’s potential to support a burgeoning battery industry, despite setbacks such as Britishvolt’s administration. He believes the main challenge for UK battery-cell manufacturers is sourcing materials, a gap Integrals Power aims to fill.

Signs of growth in the UK’s battery industry include Tata’s gigafactory in Somerset and potential projects by EVE Energy in Coventry. Labour has pledged £1.5 billion to support new facilities, while Integrals Power is seeking £40 million to £60 million in government funding for a £200-million production plant.

Hormozi emphasises the environmental benefits of their production method, which avoids the toxic practices used by many Chinese manufacturers. Instead of crushing metal compounds and releasing pollutants, Integrals Power dissolves pure lithium, iron, and phosphorus in water before heating to create a fine powder. This process enhances control over the powder’s atomic structure, increasing the energy density and range of EVs by 30%, with further improvements expected by adding manganese.

Hormozi argues that Western governments need to provide more subsidies and increase tariffs on Chinese companies to create a level playing field. While the EU and the US have imposed tariffs on Chinese car imports, the UK has maintained a 10% tariff. Hormozi believes stronger measures are needed to achieve net-zero goals sustainably.

“Net zero is a beautiful goal, but we can’t make it without subsidies and tariffs. Only then will we have a fair ground on which to compete,” Hormozi concludes.