Agenda item

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive (Place), which set out proposals for a consortium consisting of the Council, Coventry and Warwickshire Local Enterprise Partnership and WMG (Warwick University’s specialist manufacturing division) to work together to develop a proposals to develop a national battery manufacturing development facility in the area.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration.

The report indicated that more and more car manufacturers were announcing their intention to move towards building electric cars, and the demand for batteries would increase sharply over the next ten to twenty years.  Currently, expertise in battery development was concentrated in Asia, Germany and the United States, with the UK lagging behind.

The UK Government announced the Faraday Challenge, part of the Industrial Strategy Fund during the summer of 2017.  It aimed to fund battery research and development work to ensure that the demand for batteries led to the creation of jobs in the UK rather than overseas.

One of the strands of the Faraday Challenge aimed to bridge the gap between battery research in universities and large-scale battery production by car manufacturers.  The national battery manufacturing development facility (NBMDF) aimed to bridge this gap by providing an environment where universities, SMEs and car manufacturers could collaborate on battery development using state of the art equipment.

The University of Warwick, Coventry and Warwickshire Local Enterprise Partnership and the Council had come together to develop a proposition in response to the Faraday Challenge.  The bid was submitted earlier in the autumn and had now got through to the final stage of the bidding process, with an announcement on the successful bid expected from Government imminently.  The Council was confident that Coventry and Warwickshire offered the best solution for the Government’s aspiration in this area.  It had been estimated that the value of the NBMDF’s work could be worth as much as £1bn to the economy and create 10,000 jobs in the West Midlands.

It was acknowledged that the Council had a significant role in making this happen by bringing its expertise to the partnership.  This included financial management, Government liaison, and a strong knowledge and experience in securing, managing and delivering economic development over many years, both in Coventry and the wider sub-region.  In addition the Council had a proven track record in being the accountable body for successful large scale external funding and investment.

RESOLVED that the Cabinet recommend that Council:-

1.  Authorise that the Council accept the Faraday Challenge funding and to act as accountable body on behalf of the Coventry and Warwickshire Local Enterprise Partnership.

2.  Delegate authority to the Deputy Chief Executive (Place) and the Director of Finance and Corporate Services to accept the terms and conditions of the grant, to enter into the necessary agreement to secure the grant and add to the Capital Programme as necessary.

3.  Delegate authority to the Deputy Chief Executive (Place), following consultation with the Cabinet Member for Jobs and Regeneration, to:

•  determine the final content of the relevant business cases required to submit the bid to the West Midlands Combined Authority

•  submit the relevant Strategic Outline Business Cases to the West Midlands Combined Authority in relation to the work packages within the National Battery Manufacturing Development Facility Programme

•  progress the business cases to the final stage in accordance with the Combined Authority’s Assurance Framework

4.  Should the bids to the West Midland Combined Authority be successful; that Coventry City Council enters into the necessary legal documentations to secure the funding required to deliver the National Battery Manufacturing Development Facility Programme.