It comes as Western governments are trying to reduce their chronic dependence on China, where 90pc of battery cathode material and 100pc of LFP materials are currently made.
Rishi Sunak’s government previously set out plans to “onshore” some of this production, partly via relief on electricity costs, amid fears Beijing could threaten supplies during a geopolitical crisis.
The company’s factory will initially produce 20 tons per year of cathode material, before scaling up to 1,000 tons over the next two years after securing its first orders, Mr Hormozi said.
However, he said the modular production methods being used meant that it could in theory scale up to 100,000 tons, depending on demand. A big chunk of that is likely to come from Europe-based companies that will soon be forced to source at least 70pc of the materials for electric car batteries either in the UK or on the Continent.
Under the post-Brexit “rules of origin” regime, these requirements will come into force in 2027.
“That is definitely a great advantage to have over the next few years,” Mr Hormozi said.
Several different chemical compositions are currently used for batteries that power electric cars, with some primarily powered by lithium and others by nickel, for example. But LFP batteries are seen as the “rising star” of the industry, accounting for 40pc of electric car demand last year, according to the International Energy Agency. That market share has more than doubled since 2020.
Global battery production is dominated by China, which also controls the lion’s share of critical mineral refining as well.
In recent years, the US, EU and UK have all set out strategies to reduce – albeit not eliminate – their dependence on Beijing.
On top of electric cars, Mr Hormozi said the cathode material developed by Integrals Power also had applications in other areas, such as power tools.
