The Dundee gigafactory is intended to be a large-scale manufacturing facility producing over 8 million battery cells per year. The project aimed to commence production as early as 2026 and would be crucial for supplying electric vehicle manufacturers and electricity storage developers in the UK and beyond.

By constructing the gigafactory in Dundee, AMTE Power would support the growing electric vehicle and renewable energy industries in the region, creating new job opportunities and furthering the UK’s transition to cleaner energy sources.

The proposed gigafactory’s future is now uncertain despite the firm’s desire to remain in the UK, CEO Alan Hollis told Sky News that the UK does not “have a competitive environment” at this moment in time, making the US is more economically attractive for gigafactories, with subsidies covering 30-50% of operating costs.

Mr Hollis added: “We are incredibly proud of our UK heritage at AMTE Power and we want to remain a UK business.

“We have developed our technology here and our intention is to commercialise our products in the UK, using our Thurso facility and by scaling up production at our preferred Gigafactory site in Dundee. Our plans would unlock hundreds of green collar jobs while supporting the UK’s wider push to deliver net zero.

“Like any good business, we are always monitoring the wider market and must factor the global context into our considerations but we do not currently plan to relocate. We remain committed to Thurso and Dundee remains our preferred site.”

This move reflects growing concerns in the UK energy and clean technology sectors that the country may lose out on investment without countering the $369 billion (£297bn) US package. Chancellor Jeremy Hunt has so far resisted calls for a rival subsidy package, instead focusing on a “pro-growth regulatory regime.”